This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7656197.stm

The article has changed 33 times. There is an RSS feed of changes available.

Version 31 Version 32
US stocks sink to five-year low US stocks sink to five-year low
(3 days later)
US stocks have hit their lowest levels in five years as fears grew that the financial crisis would trigger a deep economic recession.US stocks have hit their lowest levels in five years as fears grew that the financial crisis would trigger a deep economic recession.
World stock markets have seen mixed performances in Tuesday trading as investors continued to worry over the strength of financial institutions.World stock markets have seen mixed performances in Tuesday trading as investors continued to worry over the strength of financial institutions.
London's FTSE 100 and France's main stock index ended higher.London's FTSE 100 and France's main stock index ended higher.
But US stocks took fright after Federal Reserve Chairman Ben Bernanke said the US economy looked set to deteriorate.But US stocks took fright after Federal Reserve Chairman Ben Bernanke said the US economy looked set to deteriorate.
The Dow Jones industrial average sank 508.39 points, or 5.1% to end at 9,447.11. It has lost more than 1,400 points over the past five sessions, nearly 13% of its value.The Dow Jones industrial average sank 508.39 points, or 5.1% to end at 9,447.11. It has lost more than 1,400 points over the past five sessions, nearly 13% of its value.
The broader S&P 500 index fell to its lowest level since September 2003 at 996.25 points.The broader S&P 500 index fell to its lowest level since September 2003 at 996.25 points.
'Historic dimensions''Historic dimensions'
Having shed 7.8% on Monday, the key London FTSE 100 index closed up 0.35% despite HBOS and Royal Bank of Scotland both losing more than 30%.Having shed 7.8% on Monday, the key London FTSE 100 index closed up 0.35% despite HBOS and Royal Bank of Scotland both losing more than 30%.
France's Cac 40 index, which lost 9% in the previous session, ended 0.55% higher.France's Cac 40 index, which lost 9% in the previous session, ended 0.55% higher.
The Federal Reserve will need to consider whether the current stance of policy remains appropriate Ben Bernanke, Fed chairmanThe Federal Reserve will need to consider whether the current stance of policy remains appropriate Ben Bernanke, Fed chairman
Earlier, Japan's Nikkei 225 index sank more than 5% before recovering slightly to close down 3%.Earlier, Japan's Nikkei 225 index sank more than 5% 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%.
Fed chairman Mr Bernanke said the US was tackling a financial crisis "of historic dimensions" and signalled that the central bank might be prepared to cut interest rates to support the economy.Fed chairman Mr Bernanke said the US was tackling a financial crisis "of historic dimensions" and signalled that the central bank might be prepared to cut interest rates to support the economy.
He said the outlook for inflation had improved as oil and other commodity prices had fallen.He said the outlook for inflation had improved as oil and other commodity prices had fallen.
"In light of these developments, the Federal Reserve will need to consider whether the current stance of policy remains appropriate," Mr Bernanke said."In light of these developments, the Federal Reserve will need to consider whether the current stance of policy remains appropriate," Mr Bernanke said.
Main developments on Tuesday included:
  • US President George W Bush called for co-ordinated action by leading industrialised countries to tackle the worldwide credit crunch
  • The UK government is poised to announce details of a comprehensive rescue package for the banking system
    class="bulletList">
  • Spain, Belgium and the Netherlands have significantly increased the amount of savers' deposits they will protect
  • European Union finance ministers agreed to increase the guarantee for customers' bank savings accounts to at least 50,000 eurosEU moves to reassure bank savers
  • The Icelandic government took control of the country's second biggest bank, Landsbanki, which owns UK internet bank IcesaveIceland takes over Landsbanki
  • Taiwan said that it would fully protect depositors' savings should a bank fail
  • The US Federal Reserve announced plans to buy massive amounts of short-term debt from companies in an effort to unfreeze the money markets
    class="bulletList">
  • Australia's central bank trimmed interest rates from 7% to 6% - despite inflation being well ahead of government targetsAustralia slashes interest rates
Main developments on Tuesday included:
  • US President George W Bush called for co-ordinated action by leading industrialised countries to tackle the worldwide credit crunch
  • The UK government is poised to announce details of a comprehensive rescue package for the banking system
    class="bulletList">
  • Spain, Belgium and the Netherlands have significantly increased the amount of savers' deposits they will protect
  • European Union finance ministers agreed to increase the guarantee for customers' bank savings accounts to at least 50,000 eurosEU moves to reassure bank savers
  • The Icelandic government took control of the country's second biggest bank, Landsbanki, which owns UK internet bank IcesaveIceland takes over Landsbanki
  • Taiwan said that it would fully protect depositors' savings should a bank fail
  • The US Federal Reserve announced plans to buy massive amounts of short-term debt from companies in an effort to unfreeze the money markets
    class="bulletList">
  • Australia's central bank trimmed interest rates from 7% to 6% - despite inflation being well ahead of government targetsAustralia slashes interest rates
Are you concerned about the global economic crisis? What questions would you like to ask the experts? Send us your questions using the form below?
In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below.
Name