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/7683495.stm

The article has changed 12 times. There is an RSS feed of changes available.

Version 9 Version 10
Recession fears drag shares lower Recession fears drag shares lower
(38 minutes later)
US stocks fell in morning trading in New York, echoing declines in Europe and Asia as fears of a global recession continued to hit investor confidence. US stocks were down in afternoon trading in New York, echoing declines in Europe and Asia as fears of a global recession hit investor confidence.
Wall Street's main Dow Jones index was down 2.9%, while in Europe, the UK's FTSE 100 lost 4.5%, Germany's Dax fell 4.5%, and France's Cac gave up 5.1%. Wall Street's main Dow Jones index was down 4%, while in Europe, the UK's FTSE 100 lost 4.5%, Germany's Dax fell 4.5%, and France's Cac gave up 5.1%.
Job cuts at Yahoo and drugs firm Merck have increased economic concerns.Job cuts at Yahoo and drugs firm Merck have increased economic concerns.
The falls came as the White House said a global summit to tackle the financial crisis will be held next month.The falls came as the White House said a global summit to tackle the financial crisis will be held next month.
The meeting will debate the reforms needed to avoid another financial crisis and look at the progress currently being made.The meeting will debate the reforms needed to avoid another financial crisis and look at the progress currently being made.
Leaders from the G20 group of nations - the world's leading industrialised countries and major developing nations - will attend. DOW JONES INDUSTRIAL AVERAGE: 22 October 2008*All Times GMTLeaders from the G20 group of nations - the world's leading industrialised countries and major developing nations - will attend. DOW JONES INDUSTRIAL AVERAGE: 22 October 2008*All Times GMT
'Rapid deterioration''Rapid deterioration'
Investor sentiment was also hit on Wednesday by warnings from both UK Prime Minister Gordon Brown and Bank of England Governor Mervyn King that Britain was most likely now entering its first recession in 16 years.Investor sentiment was also hit on Wednesday by warnings from both UK Prime Minister Gordon Brown and Bank of England Governor Mervyn King that Britain was most likely now entering its first recession in 16 years.
Interest rates are likely to be cut but it won't stop the fact that the UK is likely to go into recession, as the US probably is Richard Hunter, Hargreaves Lansdown Stockbrokers US to host first global financial summitInterest rates are likely to be cut but it won't stop the fact that the UK is likely to go into recession, as the US probably is Richard Hunter, Hargreaves Lansdown Stockbrokers US to host first global financial summit
"In the short term, the comments made by Mervyn King highlighting the fact that the economic environment has deteriorated quite rapidly over the past year have sent a shudder through the foreign exchange and equity markets," said Henk Potts, an equity strategist at Barclays Wealth."In the short term, the comments made by Mervyn King highlighting the fact that the economic environment has deteriorated quite rapidly over the past year have sent a shudder through the foreign exchange and equity markets," said Henk Potts, an equity strategist at Barclays Wealth.
"There's been a housing slump, the labour market has been suffering and business confidence has been hammered - it's no surprise that investors are spooked," he added."There's been a housing slump, the labour market has been suffering and business confidence has been hammered - it's no surprise that investors are spooked," he added.
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.
Widespread sell-offWidespread sell-off
By late morning in New York, the Dow Jones was down 260 points to 8,774. By afternoon in New York, the Dow Jones was down 364 points to 8,670.
In Europe, Germany's Dax lost 240 points to finish at 4,545, while France's Cac declined 177 points to 3,298.In Europe, Germany's Dax lost 240 points to finish at 4,545, while France's Cac declined 177 points to 3,298.
The UK's FTSE 100 ended down 189 points to 4,041.The UK's FTSE 100 ended down 189 points to 4,041.
FTSE 100 INDEX: 22 October 2008*All Times GMTFTSE 100 INDEX: 22 October 2008*All Times GMT
Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers, said attention had turned from a banking crisis - which was now considered to have been largely averted - to the possibility of recession.Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers, said attention had turned from a banking crisis - which was now considered to have been largely averted - to the possibility of recession.
"Interest rates are likely to be cut but it won't stop the fact that the UK is likely to go into recession, as the US probably is," said Mr Hunter."Interest rates are likely to be cut but it won't stop the fact that the UK is likely to go into recession, as the US probably is," said Mr Hunter.
"The question is, how long and deep will it be?""The question is, how long and deep will it be?"
He said UK GDP figures, due to be released on Friday, were likely to be in negative territory and the market was "steeling itself".He said UK GDP figures, due to be released on Friday, were likely to be in negative territory and the market was "steeling itself".
'Fundamental fears''Fundamental fears'
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.
In India, the main BSE Index closed down 513.49 points, or 4.81%, at 10,169.90 points.In India, the main BSE Index closed down 513.49 points, or 4.81%, at 10,169.90 points.
Similar concerns pushed the share index in Australia down 3.4%.Similar concerns pushed the share index in Australia down 3.4%.
And overnight in Argentina, the government announced plans to nationalise the country's private pension funds.And overnight in Argentina, the government announced plans to nationalise the country's private pension funds.
"Now the banking issues has been resolved, the market is focusing on fundamentals. There are also fears that [company] earnings will be down and that guidance will be lowered," said Cantor Fitzgerald Europe equities analyst Florent Hunsinger."Now the banking issues has been resolved, the market is focusing on fundamentals. There are also fears that [company] earnings will be down and that guidance will be lowered," said Cantor Fitzgerald Europe equities analyst Florent Hunsinger.
"The credit crisis is devastating and has done a lot of damage in the real economy," he said."The credit crisis is devastating and has done a lot of damage in the real economy," he said.