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Version 9 | Version 10 |
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European markets tumble on open | European markets tumble on open |
(10 minutes later) | |
Stock markets across Europe have fallen steeply on opening after earlier dramatic share price falls in Asia. | Stock markets across Europe have fallen steeply on opening after earlier dramatic share price falls in Asia. |
The FTSE 100 share index plunged 9.8% to 3887 points, the first time it has fallen below 4,000 points in five years. | The FTSE 100 share index plunged 9.8% to 3887 points, the first time it has fallen below 4,000 points in five years. |
There were similar falls across Europe - Paris was down 9% while Germany was down 9.6%. | There were similar falls across Europe - Paris was down 9% while Germany was down 9.6%. |
Earlier Tokyo's Nikkei index dropped 9.6% while shares in Australia, Hong Kong and Singapore all plummeted. | Earlier Tokyo's Nikkei index dropped 9.6% while shares in Australia, Hong Kong and Singapore all plummeted. |
In Russia, regulators suspended stock market trading indefinitely, citing excessive volatility. | |
Despite concerted government action, investors are increasingly fearful the financial crisis will prompt a global recession. | Despite concerted government action, investors are increasingly fearful the financial crisis will prompt a global recession. |
Finance ministers from the G7 leading industrial countries are set to meet in Washington to discuss the crisis. | Finance ministers from the G7 leading industrial countries are set to meet in Washington to discuss the crisis. |
US President George W Bush is due to make an address to the American people later in the day. | US President George W Bush is due to make an address to the American people later in the day. |
'Deeper panic' | 'Deeper panic' |
Heavy falls were seen across Asia's markets as a climate of fear took hold on Friday. | Heavy falls were seen across Asia's markets as a climate of fear took hold on Friday. |
In India, the Mumbai market plunged 6.5% in early trading. | In India, the Mumbai market plunged 6.5% in early trading. |
Selling is unstoppable in New York and Tokyo. Investors were gripped by fear Yutaka MiuraShinko Securities | Selling is unstoppable in New York and Tokyo. Investors were gripped by fear Yutaka MiuraShinko Securities |
In Japan as the Nikkei index slumped in its biggest one-day fall since the 1987 stock market crash, the crisis claimed its first Japanese financial institution, with the insurance company Yamato Life going bankrupt. | In Japan as the Nikkei index slumped in its biggest one-day fall since the 1987 stock market crash, the crisis claimed its first Japanese financial institution, with the insurance company Yamato Life going bankrupt. |
"Selling is unstoppable in New York and Tokyo," said Yutaka Miura, senior strategist at Shinko Securities in Tokyo. | "Selling is unstoppable in New York and Tokyo," said Yutaka Miura, senior strategist at Shinko Securities in Tokyo. |
"Investors were gripped by fear." | "Investors were gripped by fear." |
At the end of trading on Friday, Tokyo shares had plunged 24% during the week - double their weekly fall during the 1987 market crash. | At the end of trading on Friday, Tokyo shares had plunged 24% during the week - double their weekly fall during the 1987 market crash. |
FROM THE TODAY PROGRAMME More from Today programme | FROM THE TODAY PROGRAMME More from Today programme |
Elsewhere in Asia was a similar story. | Elsewhere in Asia was a similar story. |
Australian shares closed down 8.3%, Hong Kong's benchmark Hang Seng index slumped to a three-year low, in the Philippines, share prices closed down more 8.3% while Shanghai's index was down 3.8%. | Australian shares closed down 8.3%, Hong Kong's benchmark Hang Seng index slumped to a three-year low, in the Philippines, share prices closed down more 8.3% while Shanghai's index was down 3.8%. |
In Indonesia, plans to re-open the stock market were suspended in order to prevent what the president of the exchange called "deeper panic". Trading was halted for two days earlier this week. | In Indonesia, plans to re-open the stock market were suspended in order to prevent what the president of the exchange called "deeper panic". Trading was halted for two days earlier this week. |
The Dow Jones - the US benchmark index - ended down 7.3% on Thursday - tumbling below 9,000 points for the first time since August 2003. | The Dow Jones - the US benchmark index - ended down 7.3% on Thursday - tumbling below 9,000 points for the first time since August 2003. |
Tokyo dealers faced their worst day's trading since the 1987 crash | |
"We're way beyond fundamentals," said Chris Orndorff, head of equity strategy at Payden & Rygel, in Los Angeles. | "We're way beyond fundamentals," said Chris Orndorff, head of equity strategy at Payden & Rygel, in Los Angeles. |
"This is just pure panic, that's all it is." | "This is just pure panic, that's all it is." |
'Ready to lend' | |
As well as the G7 meeting, talks will be held at the International Monetary Fund (IMF) in Washington. | |
The IMF has said it is ready to lend to countries hit by the global credit crunch, using an emergency lending procedure first used in the 1990s Asian crisis. It has about $200bn immediately available to lend but can tap other sources. | |
There is no domestic solution to a crisis like this one Dominique Strauss-Kahn, IMF managing director Time to reform the IMF?'Major global downturn' says IMFStocks falter as fears persistRobert Peston's blog | There is no domestic solution to a crisis like this one Dominique Strauss-Kahn, IMF managing director Time to reform the IMF?'Major global downturn' says IMFStocks falter as fears persistRobert Peston's blog |
Dominique Strauss-Kahn, the organisation's chief, said the world was "on the cusp of recession", but could still recover. | |
He urged countries to act "quickly, forcefully, and co-operatively" to solve the global economic problems. | |
He said further co-ordinated action was necessary to calm financial markets: "All kinds of policy co-operation are to be commended". | He said further co-ordinated action was necessary to calm financial markets: "All kinds of policy co-operation are to be commended". |
But he issued a stark warning against countries acting unilaterally to fight the crisis. "There is no domestic solution to a crisis like this one," he said. | |