FTSE Plunges As Fear Grips Markets
The FTSE 100 dropped more than 5% in early trading today as fears of a global recession spread through the world’s stock markets.
The top companies’ index fell 211.6 points to 3868 – its lowest point for more than five years after Wednesday’s 7% loss.
Earlier the Japanese stock market suffered its biggest losses in two decades.
Tokyo’s Nikkei plunged 11.41% by the close or trading, wiping out most of its gains earlier in the week.
It was its steepest fall since the “Black Monday” crash in October 1987 and the second biggest percentage drop in the index’s history.
Following the second-biggest fall on Wall Street, it’s inevitable Japanese stocks are sliding.
Hong Kong’s Hang Seng slumped 7.6% in overnight trading and there were similar falls in Singapore, Seoul and Australia.
They came after Wall Street suffered its worst percentage drop in two decades and its second-largest points loss ever.
The Dow Jones sank 7.87% on Wednesday after official
The Federal Reserve chairman then added to market fears when he said recovery from the financial crisis “will not happen right away”.
The stock market slump comes despite huge cash injections for stricken banks by governments around the world.
Most analysts now say a US recession appears virtually certain despite the $700bn bail-out of its financial sector.
The slump in retail sales was the steepest since August 2005 and weaker than market expectations for a 0.7% fall.
In the UK, there was more evidence of a downturn after unemployment rose to 1.79 million, its highest level in 17 years.
Other stock markets registered similar drops to London’s, with Germany’s Dax down 4.6% and France’s CAC 40 4.2% lower in early trading.
Original article: FTSE Plunges As Fear Grips Markets From skynews
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