European share markets have all fallen sharply on renewed recession fears, following an earlier sell-off in Asia.
Global share markets are falling amid investors' widening fears of sustained worldwide economic recession.
London's FTSE index plunged 7% after figures confirmed Britain's economy shrank 0.5% in the last quarter - the first time in 16 years.
Wall Street tumbled sharply in opening trading, following similar falls in markets across Europe and Asia.
The pound fell to $1.52 at one point, the lowest level in six years, on expectations of further UK rate cuts.
The Dow Jones Industrial Average fell 5% in the first minutes of trading, while the hi-tech Nasdaq index plunged as much as 6% at one point.
There were similar falls in other European markets, Frankfurt was down 9% while Paris fell 8%.
On European markets, London was down 6% in afternoon trading, Frankfurt fell 8% and Paris was 6% lower.
On currency markets, the pound fell to $1.52 at one point, the lowest level in six years, on expectations of further UK rate cuts.
Banking shares were particularly hard hit. Santander, the largest bank in the eurozone, saw its shares plummet 11%.
Banking shares were particularly hard hit. Santander, the largest bank in the eurozone, saw its shares plummet 11%.
It will get worse before it gets better - the next 12 months will be very difficult Geoffrey Dicks, RBS Robert Peston's blog
It will get worse before it gets better - the next 12 months will be very difficult Geoffrey Dicks, RBS Robert Peston's blog
Elsewhere, HBOS plunged 18%, Barclays dropped 14%, Societe General lost 14% and Deutsche Bank was down 11%.
Elsewhere, HBOS plunged 18%, Barclays dropped 14%, Societe General lost 14% and Deutsche Bank was down 11%.
CMC Markets trader Matt Buckland said: "Volatility and uncertainty seem to be the watch words at the moment."
CMC Markets trader Matt Buckland said: "Volatility and uncertainty seem to be the watch words at the moment."
FTSE 100 INDEX: 24 October 2008*All Times GMT
FTSE 100 INDEX: 24 October 2008*All Times GMT
DAX INDEX: 24 October 2008*All Times GMT
DAX INDEX: 24 October 2008*All Times GMT
Amid wider signs of the global economic slowdown:
The UK economy shrank for the first time in 16 years between July and September, confirming that Britain is on the brink of recession
Business
activity in Europe slumped to a record low in October, according to the eurozone purchasing managers' index - which fell for the fifth consecutive month, to its lowest level since it was started 10 years ago
The
pound has dropped more than 8% against the dollar this week, as investors expect further UK interest rate cuts. Lower interest rates tend to weaken a country's currency, as investors take their money elsewhere
The
euro dropped to $1.25, the lowest level for two years, on expectations of eurozone interest rate cuts and slowing economic growth
In
Moscow, share trading was suspended until 28 October after both main stock markets plunged more than 10% in morning trading
In
Romania, the Bucharest stock exchange was temporarily suspended after some shares plunged almost 15%
The
oil producers' cartel Opec agreed to cut oil output by 1.5 million barrels per day at its emergency meeting in Vienna, to prop up falling prices. Oil prices are at a 17-month low amid fears an economic recession will cut demand
Amid wider signs of the global economic slowdown:
The UK economy shrank for the first time in 16 years between July and September, confirming that Britain is on the brink of recession
Business
activity in Europe slumped to a record low in October, according to the eurozone purchasing managers' index - which fell for the fifth consecutive month, to its lowest level since it was started 10 years ago
The
pound has dropped more than 8% against the dollar this week, as investors expect further UK interest rate cuts. Lower interest rates tend to weaken a country's currency, as investors take their money elsewhere
The
euro dropped to $1.25, the lowest level for two years, on expectations of eurozone interest rate cuts and slowing economic growth
In
Moscow, share trading was suspended on both main share indexes until 28 October, after they plunged more than 10%
In
Romania, the Bucharest stock exchange was temporarily suspended after some shares plunged almost 15%
The
oil producers' cartel Opec agreed to cut oil output by 1.5 million barrels per day at its emergency meeting in Vienna, to prop up falling prices. Oil prices are at a 17-month low amid fears an economic recession will cut demand
RBS chief economist Geoffrey Dicks said Britain's recession would last for at least a year, saying: "It will get worse before it gets better - the next 12 months will be very difficult."
As UK shares were battered by data that confirmed the economy was shrinking, RBS chief economist Geoffrey Dicks said Britain's recession would last for at least a year, saying: "It will get worse before it gets better - the next 12 months will be very difficult."
Across Asia, share prices tumbled for a third day in a row as investors feared a global recession would badly hit company earnings.
Across Asia, share prices tumbled for a third day in a row as investors feared a global recession would badly hit company earnings.
Japan's Nikkei closed at a five-and-a-half year low, down 9.6% after the electronics giant Sony halved its full-year profit forecasts.
Japan's Nikkei closed at a five-and-a-half year low, down 9.6% while South Korea's market plunged 10.6%.
South Korea's market plunged 10.6% as chip maker Samsung announced a 44% fall in its third-quarter profits.
