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| Stock markets retreat after rally | Stock markets retreat after rally |
| (20 minutes later) | |
| Stock markets have lost ground following two days of dramatic rises. | Stock markets have lost ground following two days of dramatic rises. |
| Investors fear that government action to strengthen the financial system will not prevent a worldwide recession. | Investors fear that government action to strengthen the financial system will not prevent a worldwide recession. |
| The UK's FTSE 100 index was down 1.2% and France's Cac 40 fell 1.1% in early trade. Hong Kong, Indian and Australian stocks all fell. | The UK's FTSE 100 index was down 1.2% and France's Cac 40 fell 1.1% in early trade. Hong Kong, Indian and Australian stocks all fell. |
| Asian countries joined the global rescue effort, agreeing to set up a multi-billion dollar fund to buy banks' bad debt and support banks. | Asian countries joined the global rescue effort, agreeing to set up a multi-billion dollar fund to buy banks' bad debt and support banks. |
| The FTSE 100 index of the UK's top shares was down 52 points at 4,342.25. France's Cac 40 lost 40.25 points to 3,588.27 points. | The FTSE 100 index of the UK's top shares was down 52 points at 4,342.25. France's Cac 40 lost 40.25 points to 3,588.27 points. |
| Australian stocks ended 0.8% lower and Indian shares were down 4.3%, falling below 11,000 points shortly after noon in Mumbai. | Australian stocks ended 0.8% lower and Indian shares were down 4.3%, falling below 11,000 points shortly after noon in Mumbai. |
| In Hong Kong, the Hang Seng index was down almost 3%. | In Hong Kong, the Hang Seng index was down almost 3%. |
| However, Japan's Nikkei 225 index ended the day up 1.1% at 9,547.47 points despite falling in earlier trade. On Tuesday, it recorded its biggest ever gain. | However, Japan's Nikkei 225 index ended the day up 1.1% at 9,547.47 points despite falling in earlier trade. On Tuesday, it recorded its biggest ever gain. |
| "The rebound is over and the risk of recession as high as ever," said Patrick Shum, strategist with Karl Thomson Securities in Hong Kong. | "The rebound is over and the risk of recession as high as ever," said Patrick Shum, strategist with Karl Thomson Securities in Hong Kong. |
| "Governments across the world are cutting welfare spending and issuing more debt to help the financial system. But these measures will create a bigger problem of an economic slowdown." | "Governments across the world are cutting welfare spending and issuing more debt to help the financial system. But these measures will create a bigger problem of an economic slowdown." |
| Asian action | Asian action |
| The Asian move comes after Europe and US announced a series of steps to recapitalise banks and guarantee bank lending to get credit markets moving again. | The Asian move comes after Europe and US announced a series of steps to recapitalise banks and guarantee bank lending to get credit markets moving again. |
| FROM THE TODAY PROGRAMME More from Today programme | |
| Governments worldwide have pledged around $3 trillion as part of efforts to stem the financial crisis. | Governments worldwide have pledged around $3 trillion as part of efforts to stem the financial crisis. |
| Philippines President Gloria Macapagal Arroyo said the World Bank has committed to provide the Asian fund with $10bn | Philippines President Gloria Macapagal Arroyo said the World Bank has committed to provide the Asian fund with $10bn |
| She said that the Asian Development Bank and the International Monetary Fund may also contribute to the fund as well as the 10-member Association of Southeast Asian Nations (ASEAN) and China, Japan and South Korea. | She said that the Asian Development Bank and the International Monetary Fund may also contribute to the fund as well as the 10-member Association of Southeast Asian Nations (ASEAN) and China, Japan and South Korea. |
| Wall Street nerves | Wall Street nerves |
| In New York on Tuesday, Wall Street ended slightly lower at the close of trading as investors took some profits after Monday's big rises in stocks. | In New York on Tuesday, Wall Street ended slightly lower at the close of trading as investors took some profits after Monday's big rises in stocks. |
| The Dow Jones index ended the day down 0.82% as investors turned their attention to the worsening economic outlook. Traders say Wall Street is expected to remain nervous in the weeks ahead because of recession worries. | The Dow Jones index ended the day down 0.82% as investors turned their attention to the worsening economic outlook. Traders say Wall Street is expected to remain nervous in the weeks ahead because of recession worries. |
| Late on Tuesday the US announced that its budget deficit had reached $455bn, the highest-ever figure. | Late on Tuesday the US announced that its budget deficit had reached $455bn, the highest-ever figure. |
| This represents more than 3% of the country's gross domestic product. | This represents more than 3% of the country's gross domestic product. |
| Treasury Secretary Henry Paulson said it reflected the problems in the housing market, and slower economic growth. | Treasury Secretary Henry Paulson said it reflected the problems in the housing market, and slower economic growth. |