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| Version 5 | Version 6 |
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| Global shares sink on bank fears | Global shares sink on bank fears |
| (20 minutes later) | |
| Shares in the US and across Europe have tumbled amid a string of bad news from the troubled banking sector. | Shares in the US and across Europe have tumbled amid a string of bad news from the troubled banking sector. |
| Confidence was hit by news of the rescue of Wachovia in the US, of Fortis in Europe and the nationalisation of UK bank Bradford & Bingley. | Confidence was hit by news of the rescue of Wachovia in the US, of Fortis in Europe and the nationalisation of UK bank Bradford & Bingley. |
| In the US, the Dow Jones was down 2.8% in early trade. In Europe, the UK's FTSE 100 was down 3.7% and Germany's Dax index was 3.4% lower. | In the US, the Dow Jones was down 2.8% in early trade. In Europe, the UK's FTSE 100 was down 3.7% and Germany's Dax index was 3.4% lower. |
| Central banks have put in extra funds to try to ease the credit squeeze. | Central banks have put in extra funds to try to ease the credit squeeze. |
| 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 |
| On the currency markets the dollar had risen strongly against both the pound and the euro on news that the $700bn US financial bail-out deal was set to be approved, but it then fell back. | On the currency markets the dollar had risen strongly against both the pound and the euro on news that the $700bn US financial bail-out deal was set to be approved, but it then fell back. |
| In early New York trade, the euro was trading at $1.4426, off day-lows of $1.4395 but still down 1.3% on the day. | In early New York trade, the euro was trading at $1.4426, off day-lows of $1.4395 but still down 1.3% on the day. |
| Lack of progress | Lack of progress |
| In the share markets, financial stocks bore the brunt of the falls. In afternoon trade in London, Lloyds TSB was down 13.2%, Royal Bank of Scotland shares plummeted 20.6%, HBOS dropped 12.5% and Barclays was down 9.9%. | In the share markets, financial stocks bore the brunt of the falls. In afternoon trade in London, Lloyds TSB was down 13.2%, Royal Bank of Scotland shares plummeted 20.6%, HBOS dropped 12.5% and Barclays was down 9.9%. |
| 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 dropped to 72.2% in afternoon trading. 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 dropped to 72.2% in afternoon trading. 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 19%. Deutsche Bank's shares also took a battering, falling 9%. | Shares in Commerzbank fell 21% at one stage but recovered slightly in later trading to show a decline of 19%. Deutsche Bank's shares also took a battering, falling 9%. |
| In France, the Cac 40 index of leading shares was down 3.9% by late afternoon there. Shares in Credit Agricole fell 12% and BNP Paribas were trading at 3.5%. | In France, the Cac 40 index of leading shares was down 3.9% by late afternoon there. Shares in Credit Agricole fell 12% and BNP Paribas were trading at 3.5%. |
| Meanwhile in Brussels, shares in Belgian-French banking group Dexia were down by about 30% on worries over its financial health. | |
| A spokesperson for Dexia said its liquidity was "very good" but added the situation on the financial markets had to be "constantly monitored". | |
| Asian caution | Asian caution |
| Earlier in Asia, investors had remained cautious as they waited to see the detail of the US rescue package. | Earlier in Asia, investors had remained cautious as they waited to see the detail of the US rescue package. |
| In Japan, the benchmark Nikkei 225 index closed down 1.3%. In Hong Kong, the Hang Seng index closed down more than 4%. | In Japan, the benchmark Nikkei 225 index closed down 1.3%. In Hong Kong, the Hang Seng index closed down more than 4%. |
| "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." |