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/7670987.stm

The article has changed 18 times. There is an RSS feed of changes available.

Version 1 Version 2
Stock markets retreat after rally Stock markets retreat after rally
(about 3 hours 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 3.2% and France's Cac 40 fell 2.5% 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 141.8 points at 4,252.42. France's Cac 40 lost 92 points to 3,536.43 points.
Australian stocks ended 0.8% lower and Indian shares were down 4.3%, falling below 11,000 points shortly after noon in Mumbai. Germany's Dax index fell 3%, or 159.8 points, to 5,039.4 point.
In Hong Kong, the Hang Seng index was down almost 3%. "The inevitable reversal for equity markets does seem to be under way," said Matt Buckland, a dealer at CMC Markets
The rebound is over and the risk of recession as high as ever Patrick Shum, Karl Thomson Securities UK unemployment increases againBank crisis to dominate EU talksNew York 'faces 165,000 job cuts'
"We're seeing some profit taking and a reassessment of positions after the upswing, although there is an element of concern as to the longer term economic outlook creeping in," he added.
Japan bucks trend
Australian stocks ended 0.8% lower and India's main share index slid 6%, falling below 11,000 points.
In Hong Kong, the Hang Seng Index closed down 834.58 points, or 5% at 15,998.
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 actionAsian 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 programmeFROM 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 $10bnPhilippines 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 nervesWall 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. 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.