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| Version 3 | Version 4 |
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| US shares fall mirroring EU slide | |
| (about 4 hours later) | |
| US shares have fallen sharply amidst trouble on European financial markets and news that Citigroup has taken US bank Wachovia. | |
| The Dow Jones fell 316.44 points, or 2.8%, to 10.826.69, while the Nasdaq dropped 3.8% to 2,100.71 points. The S&P 500 shed 3.5% to 1,170.55 points. | |
| In London the FTSE 100 index was down 3.7% after after UK bank Bradford & Bingley was partly nationalised. | |
| This was despite news of a $700bn (£380bn) US finance sector bailout. | |
| The main European share markets all fell sharply, with the UK FTSE 100 down 3.3% and Germany's Dax 2.8% lower. | The main European share markets all fell sharply, with the UK FTSE 100 down 3.3% and Germany's Dax 2.8% lower. |
| In Japan, the benchmark Nikkei 225 index closed down 1.3%. | In Japan, the benchmark Nikkei 225 index closed down 1.3%. |
| However, news that a US rescue deal was set to be approved boosted the dollar, which climbed strongly against the pound and the euro. | However, news that a US rescue deal was set to be approved boosted the dollar, which climbed strongly against the pound and the euro. |
| There's a sense that there's a lot more bad news to come Peter Dixon, Commerzbank B&B nationalisedUS rescue deal publishedFortis deal agreed | There's a sense that there's a lot more bad news to come Peter Dixon, Commerzbank B&B nationalisedUS rescue deal publishedFortis deal agreed |
| In early trade in Europe, the euro was down 2% against the dollar at $1.4301, while the pound fell 2.5% to $1.7962, before recovering slightly. | In early trade in Europe, the euro was down 2% against the dollar at $1.4301, while the pound fell 2.5% to $1.7962, before recovering slightly. |
| Lack of progress | Lack of progress |
| In the share markets, financial stocks bore the brunt of the falls. In late morning trade in London, Lloyds TSB was down 6.6%, Royal Bank of Scotland shares fell 11.2%, HBOS dropped 11.7% and Barclays was down 6.4%. | In the share markets, financial stocks bore the brunt of the falls. In late morning trade in London, Lloyds TSB was down 6.6%, Royal Bank of Scotland shares fell 11.2%, HBOS dropped 11.7% and Barclays was down 6.4%. |
| Earlier on Monday, the UK Government had confirmed that it was taking over B&B's mortgage portfolio, while the bank's savings business and branches were being sold to Spanish bank Santander. | Earlier on Monday, the UK Government had confirmed that it was taking over B&B's mortgage portfolio, while the bank's savings business and branches were being sold to Spanish bank Santander. |
| "There's a feeling abroad that the US (rescue package) was a grudging affair, we were talking about this a week ago and we're not that much further on," said Peter Dixon, UK economist at Commerzbank. | "There's a feeling abroad that the US (rescue package) was a grudging affair, we were talking about this a week ago and we're not that much further on," said Peter Dixon, UK economist at Commerzbank. |
| "News that part of the Bradford & Bingley is being nationalised is not helping and there's a sense that there's a lot more bad news to come." | "News that part of the Bradford & Bingley is being nationalised is not helping and there's a sense that there's a lot more bad news to come." |
| European shares hit | European shares hit |
| In Germany, shares in Hypo Real Estate plunged 61%. The commercial property lender announced it had struck a deal with a consortium of banks for a multibillion euro line of credit to secure its future. | In Germany, shares in Hypo Real Estate plunged 61%. The commercial property lender announced it had struck a deal with a consortium of banks for a multibillion euro line of credit to secure its future. |
| Shares in Commerzbank fell 21% at one stage but recovered slightly in later trading to show a decline of 16.7%. Deutsche Bank's shares also took a battering, falling 6.7%. | Shares in Commerzbank fell 21% at one stage but recovered slightly in later trading to show a decline of 16.7%. Deutsche Bank's shares also took a battering, falling 6.7%. |
| In France, the Cac 40 index of leading shares was down 3.1% by early afternoon there. Shares in Credit Agricole fell 7% and BNP Paribas dropped 3.7%. | In France, the Cac 40 index of leading shares was down 3.1% by early afternoon there. Shares in Credit Agricole fell 7% and BNP Paribas dropped 3.7%. |
| Meanwhile in Brussels, the value of stocks in Belgian-French banking group Dexia fell by nearly a third in morning trade. | Meanwhile in Brussels, the value of stocks in Belgian-French banking group Dexia fell by nearly a third in morning trade. |
| Shares in the company, which acts as banker for the French local government, dropped as much as 33% in early trade but later recovered slightly. Shares were showing a loss of 23.24% in late morning trade. | Shares in the company, which acts as banker for the French local government, dropped as much as 33% in early trade but later recovered slightly. Shares were showing a loss of 23.24% in late morning trade. |
| Asian caution | Asian caution |
| A spokesperson for Dexia said its liquidity was "very good" but added the situation on the financial markets had to be "constantly monitored". | A spokesperson for Dexia said its liquidity was "very good" but added the situation on the financial markets had to be "constantly monitored". |
| In Hong Kong, the Hang Seng index closed down more than 4%. Investors in Asia remained cautious as they waited to see the detail of the US rescue package. | In Hong Kong, the Hang Seng index closed down more than 4%. Investors in Asia remained cautious as they waited to see the detail of the US rescue package. |
| "Investors want to wait to see how the US plan works," said Yukio Takahashi, market analyst at Shinko Securities. | "Investors want to wait to see how the US plan works," said Yukio Takahashi, market analyst at Shinko Securities. |
| "They haven't been able to pass judgement on it yet." | "They haven't been able to pass judgement on it yet." |