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Markets mixed in volatile trade Markets mixed in volatile trade
(40 minutes later)
European and Asian stock markets were mixed on Tuesday with investors continuing to worry over the strength of financial institutions. European and Asian stock markets were mixed in volatile Tuesday trading with investors continuing to worry over the strength of financial institutions.
London's FTSE 100 surrendered early gains as banking shares took a hammering - with Royal Bank of Scotland (RBS) losing 28% and HBOS down 13%. London's FTSE 100 moved ahead by late morning, despite banking shares taking a hammering. Royal Bank of Scotland - which lost 40% at one point - fell 17%.
Having shed 7.8% in the previous session, the key London index was down 0.3%. France's Cac-40 index added 0.7%. Having shed 7.8% in the previous session, the key London index was up 0.6%. France's Cac-40 index added 1.6%.
Asian markets were also mixed as traders reacted to the turmoil. Japan's Asian markets were mixed as traders reacted to the turmoil.
Japan's Nikkei 225 index sank more than 5% - below the 10,000-point barrier - before recovering slightly to close down 3%.Japan's Nikkei 225 index sank more than 5% - below the 10,000-point barrier - before recovering slightly to close down 3%.
However Australia's financial markets rallied after the country's central bank cut its official interest rate from 7% to 6%.However Australia's financial markets rallied after the country's central bank cut its official interest rate from 7% to 6%.
'Recession arrived''Recession arrived'
A shortage of capital is a big issue for banks...but the really big issue is the breakdown of wholesale markets Robert PestonBBC business editor Read Robert's blog in fullA shortage of capital is a big issue for banks...but the really big issue is the breakdown of wholesale markets Robert PestonBBC business editor Read Robert's blog in full
The market moves came amid developments including:
  • The Icelandic government took control of the country's second biggest bank, Landsbanki, which owns UK internet bank IcesaveIceland rescues Landsbanki
  • The British Chamber of Commerce said that the UK was already in recession UK economy 'already in recession'
  • The BBC's business editor Robert Peston learned that a trio of leading UK banks had met with Chancellor Alistair Darling and told him they were disappointed he had not presented a fully elaborated banking rescue planRead Robert's blog
  • Australia's central bank trimmed interest rates from 7% to 6% - despite inflation being well ahead of government targets Australia slashes interest rates
  • European Union finance ministers prepared to meet in Luxembourg for emergency talks on the world's financial meltdown EU finance chiefs in crisis talks
  • Moscow's two main stock exchanges said they would remain closed on Tuesday morning. Both had suffered heavy losses on Monday
The market moves came amid developments including:
  • The Icelandic government took control of the country's second biggest bank, Landsbanki, which owns UK internet bank IcesaveIceland rescues Landsbanki
  • The British Chamber of Commerce said that the UK was already in recession UK economy 'already in recession'
  • The BBC's business editor Robert Peston learned that a trio of leading UK banks had met with Chancellor Alistair Darling and told him they were disappointed he had not presented a fully elaborated banking rescue planRead Robert's blog
  • Australia's central bank trimmed interest rates from 7% to 6% - despite inflation being well ahead of government targets Australia slashes interest rates
In London, the FTSE 100 index was down 12 points at 4,576 after its early gains evaporated. In London, the FTSE 100 index was up 25 points at 4,614 after its early gains evaporated.
Its 391-point drop on Monday had already wiped £93bn from the value of London's leading shares.Its 391-point drop on Monday had already wiped £93bn from the value of London's leading shares.
France's Cac-40 index, which lost more than 9% in the previous session, surrendered some of its early gains, but was 25 points ahead by mid-morning at 3,736 while Germany's Dax index lost 0.5% to 5,357. France's Cac-40 index, which lost more than 9% in the previous session, surrendered some of its early gains, but was 60 points ahead at 3,771, while Germany's Dax index lost 0.1% to 5,382.
The Nikkei index lost 317.2 points to end at 10,155, while Hong Kong's Hang Seng ended 5% lower in afternoon trading.The Nikkei index lost 317.2 points to end at 10,155, while Hong Kong's Hang Seng ended 5% lower in afternoon trading.
On Wall Street on Monday, the Dow Jones recovered from being more than 800 points down at one point to end 370 points lower at 9,955.5 points - its first sub-10,000 finish since 2004.On Wall Street on Monday, the Dow Jones recovered from being more than 800 points down at one point to end 370 points lower at 9,955.5 points - its first sub-10,000 finish since 2004.
How is the current situation on the markets affecting you? Were you or your family affected by the Wall Street Crash in 1929?How is the current situation on the markets affecting you? Were you or your family affected by the Wall Street Crash in 1929?
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