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Fears drag down European markets | |
(about 2 hours later) | |
European stock markets showed heavy losses in early afternoon trading as fears of a global recession continued to rattle investors' confidence. | |
In London, the benchmark FTSE index was down by 3.9%, while France and Germany, the Cac and Dax were 3.2% and 3.3% lower respectively. | |
The falls reflect losses in the Asian markets, where South Korea's index fell 5.1% to close at a three-year low. | |
Other Asian shares fell on fears a US recession would hit the global economy. | Other Asian shares fell on fears a US recession would hit the global economy. |
Commodity falls | Commodity falls |
"The old 'story' that has been put aside in the recent period of financial market crisis now comes back to the market's mind: recession fears," Commerzbank said in a note. | "The old 'story' that has been put aside in the recent period of financial market crisis now comes back to the market's mind: recession fears," Commerzbank said in a note. |
On Tuesday evening, the governor of the Bank of England, Mervyn King, warned that Britain was probably entering its first recession in 16 years. | On Tuesday evening, the governor of the Bank of England, Mervyn King, warned that Britain was probably entering its first recession in 16 years. |
Stocks were also dragged down by commodity stocks tracking weaker oil and copper prices. | Stocks were also dragged down by commodity stocks tracking weaker oil and copper prices. |
On Tuesday, Wall Street's Dow Jones index sank 2.5% after several US firms reported weak earnings figures. | On Tuesday, Wall Street's Dow Jones index sank 2.5% after several US firms reported weak earnings figures. |
The firms, such as Caterpillar and DuPont, were also cautious about their prospects. | |
Widespread sell-off | Widespread sell-off |
In early afternoon trading, the FTSE index was down 166.34 points, or 3.93%, at 4063.39 points. The Cac 40 was also down, shedding 114.09 points, or 3.28% to 3361.31 points, while the Dax slumped 161.70 points, or 3.38%, at 4622.71 points. | |
Earlier, Japan's benchmark Nikkei fell 631.56 points, or 6.8%, to close at 8,674.69 - its biggest one-day loss in percentage terms since last Thursday, when it fell 11%. The broader Topix index fell 7.1% to close at 889.23. | Earlier, Japan's benchmark Nikkei fell 631.56 points, or 6.8%, to close at 8,674.69 - its biggest one-day loss in percentage terms since last Thursday, when it fell 11%. The broader Topix index fell 7.1% to close at 889.23. |
The Korea Composite Stock Price Index closed at 1,134.59 points, the lowest close since early autumn 2005, and had touched a low of 1,095.56 earlier in the day. | The Korea Composite Stock Price Index closed at 1,134.59 points, the lowest close since early autumn 2005, and had touched a low of 1,095.56 earlier in the day. |
In other Asian markets, Singapore's benchmark index fell 5% to a four-year low, as banking and property shares slid on worries the global economy is heading for a recession. | In other Asian markets, Singapore's benchmark index fell 5% to a four-year low, as banking and property shares slid on worries the global economy is heading for a recession. |
Similar concerns pushed the share index in Australia down 3.4%. | Similar concerns pushed the share index in Australia down 3.4%. |
FTSE 100 INDEX: 22 October 2008*All Times GMT | FTSE 100 INDEX: 22 October 2008*All Times GMT |