Number 10 has said the prime minister is "not complacent" about the continuing slide in the British stock market.

Expressing confidence in Britain's ability to weather the storm, Downing Street said that that the "fundamentals" of the British economy were sound.

Forum Response: Business Services Association

Norman Rose, director general of the Business Services Association, told ePolitix.com: "The major factor in the recent fall must be the threat of war against Iraq and what economic effects this might have nationally and internationally.

"Conflict is bound to affect trading relationships and business streams. The spectre of possible terrorist attacks will also be weighing on the minds of investors. Equally, it must be borne in mind that the dot.com boom of the late 1990s was unreal and it was necessary for the index to fall to rebalance itself.

"On this occasion, external forces have had an undue influence on this process. In the past, the market has always found a way to rebalance itself and, no doubt, will do so again this time."

Forum Response: Institute of Directors

Ruth Lea, head of the policy unit at the IoD, told ePolitix.com: ""We are naturally very concerned about the tumbling stock markets and the undermining effect it has on business confidence. Moreover it is hard to see when recovery will take place given the huge uncertainties in the world economy."