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| Version 2 | Version 3 |
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| European shares spiral downwards | European shares spiral downwards |
| (20 minutes later) | |
| European share markets have all fallen sharply on renewed recession fears, following an earlier sell-off in Asia. | European share markets have all fallen sharply on renewed recession fears, following an earlier sell-off in Asia. |
| London's FTSE index plunged more than 6% after figures confirmed Britain's economy shrank 0.5% in the last quarter - the first time in 16 years. | London's FTSE index plunged more than 6% after figures confirmed Britain's economy shrank 0.5% in the last quarter - the first time in 16 years. |
| The pound fell below $1.60 for the first time in five years on expectations of further UK rate cuts. | The pound fell below $1.60 for the first time in five years on expectations of further UK rate cuts. |
| There were similar steep falls in other major European markets - Paris was down 7% and Frankfurt was 7.3% lower. | |
| FTSE 100 INDEX: 24 October 2008*All Times GMT | |
| DAX INDEX: 24 October 2008*All Times GMT | |
| On the foreign exchanges, the pound has dropped nearly 8% against the dollar this week. | On the foreign exchanges, the pound has dropped nearly 8% against the dollar this week. |
| Investors are pulling out of the pound because, with the UK economy on the brink of a recession, the Bank of England is widely expected to cut its key interest rate from the current 4.5%. | Investors are pulling out of the pound because, with the UK economy on the brink of a recession, the Bank of England is widely expected to cut its key interest rate from the current 4.5%. |
| Lower interest rates tend to weaken a country's currency, as investors take their money elsewhere in search of higher yields. | Lower interest rates tend to weaken a country's currency, as investors take their money elsewhere in search of higher yields. |
| The euro dropped below 1.27 dollars, hitting a two-year low on expectations of euro zone interest rate cuts and slowing economic growth. | The euro dropped below 1.27 dollars, hitting a two-year low on expectations of euro zone interest rate cuts and slowing economic growth. |
| 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." |
| "Asian markets have again been under pressure overnight whilst there's also a degree of concern surrounding the corporate forecasts that came out from across the Atlantic," he said. | "Asian markets have again been under pressure overnight whilst there's also a degree of concern surrounding the corporate forecasts that came out from across the Atlantic," he said. |
| Earnings fears | |
| Oil producers' cartel Opec has started an emergency meeting in Vienna to discuss possible production cuts as it tries to prop up falling prices. | Oil producers' cartel Opec has started an emergency meeting in Vienna to discuss possible production cuts as it tries to prop up falling prices. |
| The meeting, originally planned for November, was brought forward because of growing concerns about the impact of the financial crisis on the oil market. | The meeting, originally planned for November, was brought forward because of growing concerns about the impact of the financial crisis on the oil market. |
| Oil prices have fallen to a 16-month low amid fears a global economic recession will cut demand. | Oil prices have fallen to a 16-month low amid fears a global economic recession will cut demand. |
| 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% after the electronics giant Sony halved its full-year profit forecasts. |
| South Korea's market plunged 10.6% as chip maker Samsung announced a 44% fall in its third-quarter profits. | South Korea's market plunged 10.6% as chip maker Samsung announced a 44% fall in its third-quarter profits. |
| Earlier Thursday was another volatile trading day on Wall Street after a slew of weak corporate earnings stoked fears of a United States recession. | Earlier Thursday was another volatile trading day on Wall Street after a slew of weak corporate earnings stoked fears of a United States recession. |
| The main Dow Jones index fell as low as 8,251 points before closing the day up 172 points or 2% at 8,691. | The main Dow Jones index fell as low as 8,251 points before closing the day up 172 points or 2% at 8,691. |
| The technology-heavy Nasdaq, in contrast, lost 0.73% to close at 1,603.9 points. | The technology-heavy Nasdaq, in contrast, lost 0.73% to close at 1,603.9 points. |