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Shares slide amid recession fears Shares volatile on recession fear
(30 minutes later)
US shares have fallen in early trading on Wall Street, as a slew of weak corporate earnings further increased fears that a recession is on the way. US shares have been volatile in early trading on Wall Street, after a slew of weak corporate earnings increased fears that a recession is on the way.
With investor sentiment also hit by a higher-than-expected rise in US unemployment, the main Dow Jones index was down 41 points or 0.5% to 8,479. The main Dow Jones index was down 0.5% at one point, with confidence also hit by more signs of rising unemployment, before recovering to rise by 0.8%.
Firms releasing subdued trading figures included Dow Chemical, which said a global recession was likely for 2009. Firms releasing subdued trading figures included Dow Chemical, which said a global recession was likely in 2009.
Wall Street's falls echoed earlier declines in both Europe and Asia. Wall Street's ups and downs came after earlier declines in Europe and Asia.
'Credit tsunami''Credit tsunami'
Frail investor confidence was also knocked by a speech by former Federal Reserve boss Alan Greenspan, who said the world was continuing to face a "once-in-a-century credit tsunami" which would have a severe impact on the US economy.Frail investor confidence was also knocked by a speech by former Federal Reserve boss Alan Greenspan, who said the world was continuing to face a "once-in-a-century credit tsunami" which would have a severe impact on the US economy.
DOW JONES INDUSTRIAL AVERAGE: 23 October 2008*All Times GMTDOW JONES INDUSTRIAL AVERAGE: 23 October 2008*All Times GMT
"The market is coming to grips, after being in denial for so long, with a global recession, and to our eyes, we've thought we've been in recession for just about a year now," said Barry Ritholtz, director of equity research at Fusion IQ in New York."The market is coming to grips, after being in denial for so long, with a global recession, and to our eyes, we've thought we've been in recession for just about a year now," said Barry Ritholtz, director of equity research at Fusion IQ in New York.
"Now the question is, is this going to be a more serious recession, is this going to be deeper, longer, more prolonged than previously expected.""Now the question is, is this going to be a more serious recession, is this going to be deeper, longer, more prolonged than previously expected."
Another weak US trading statement came from Starwood Hotels, which predicts that it will see room occupancy fall in the last three months of the year.Another weak US trading statement came from Starwood Hotels, which predicts that it will see room occupancy fall in the last three months of the year.
Meanwhile, United Parcel Service predicts its deliveries for the same period will fall 4%.Meanwhile, United Parcel Service predicts its deliveries for the same period will fall 4%.
European declines On the jobs front, the US Labor Department reported that new applications for unemployment benefit rose by a larger-than-expected 15,000 last week to a seasonally-adjusted 478,000.
The UK's FTSE 100 was down 87 points or 2% at 3,953 in afternoon trading in London, while Germany's Dax was 102 points or 2.2% lower at 4,469. European falls
The UK's FTSE 100 was down 87 points, or 2%, at 3,953 in afternoon trading in London, while Germany's Dax was 102 points, or 2.2%, lower at 4,469.
FTSE 100 INDEX: 23 October 2008*All Times GMTFTSE 100 INDEX: 23 October 2008*All Times GMT
The FTSE's falls came after figures showed that UK retail sales grew at their slowest rate in two-and-a-half years in September, a sign of tough conditions. The FTSE's falls came after figures showed that UK retail sales grew at their slowest annual rate in two-and-a-half years in September, a sign of tough conditions.
Sterling also remained under pressure - close to a five-year dollar low - as traders anticipated more rate cuts. Sterling also remained under pressure - close to a five-year dollar low - as traders anticipated more UK interest rate cuts. The pound was trading at $1.6299.
Investors are now increasingly concerned about the global economy and how long the financial crisis will endure. In other key market developments: class="bulletList">
  • Sterling stayed near the five-year low of $1.6148 reached on Wednesday, trading at about $1.6299
  • South Korea's Kospi index fell 7.4%, its lowest close since July 2005. The Korean won lost 5% of its value against the dollar
  • Hong Kong's Hang Seng index was down 4.7%, at its lowest ebb since April 2005
  • At one point, the Nikkei was trading at 8,016.61, its lowest level for more than five years. It recovered to close down 213 points or 2.5% at 8,460 points
  • The yen strengthened against the dollar and the euro overnight. The dollar hit a seven-month low of 96.85 yen, while the euro hit a six-year low of 123.40 yen
  • Indian shares opened down 4.8% at their lowest since June 2006. The rupee has so far shed nearly 21% against the dollar in 2008
  • In Australia, the benchmark index closed down 4.4%.
    		• Investors are now increasingly concerned about the global economy and how long the financial crisis will endure. In other key market developments:
      class="bulletList">
    • South Korea's Kospi index fell 7.4%, its lowest close since July 2005. The Korean won lost 5% of its value against the dollar
    • Hong Kong's Hang Seng index was down 4.7%, at its lowest ebb since April 2005
    • At one point, the Nikkei was trading at 8,016.61, its lowest level for more than five years. It recovered to close down 213 points or 2.5% at 8,460 points
    • The yen strengthened against the dollar and the euro overnight. The dollar hit a seven-month low of 96.85 yen, while the euro hit a six-year low of 123.40 yen
    • Indian shares opened down 4.8% at their lowest since June 2006. The rupee has so far shed nearly 21% against the dollar in 2008
    • In Australia, the benchmark index closed down 4.4%.