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Shares plummet on recession fears Shares plummet on recession fears
(10 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 7% after figures confirmed Britain's economy shrank 0.5% in the last quarter - the first time in 16 years. London's FTSE index plunged 7.5% after figures confirmed Britain's economy shrank 0.5% in the last quarter - the first time in 16 years.
The pound fell to $1.52 - the lowest level in five years - on expectations of further UK rate cuts.The pound fell to $1.52 - the lowest level in five years - on expectations of further UK rate cuts.
There were even steeper falls in other European markets. Frankfurt fell nearly 10% and Paris was down 8%.There were even steeper falls in other European markets. Frankfurt fell nearly 10% and Paris was down 8%.
Banking shares were particularly hard hit. Santander, the largest bank in the eurozone, saw its shares plunge 11%. Banking shares were particularly hard hit. Santander, the largest bank in the eurozone, saw its shares plummet 11%.
Elsewhere HBOS plunged 18%, Barclays dropped 14%, Societe General 12% and Deutsche Bank was down 11%.
FTSE 100 INDEX: 24 October 2008*All Times GMTFTSE 100 INDEX: 24 October 2008*All Times GMT
DAX INDEX: 24 October 2008*All Times GMT
  • 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, trading was suspended for one hour after the main share index dropped 7.4% in the first two hours of trading
  • The oil producers' cartel Opec has agreed to cut oil output by 1.5 million barrels per day at its emergency meeting in Vienna, as it tries to prop up falling prices. Oil prices have fallen to a 16-month low amid fears a global economic recession will cut demand
  • The UK economy shrank for the first time in 16 years between July and September, confirming that Britain is on the brink of recession.
DAX INDEX: 24 October 2008*All Times GMT
  • 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, trading was suspended for one hour after the main share index dropped 7.4% in the first two hours of trading
  • The oil producers' cartel Opec has agreed to cut oil output by 1.5 million barrels per day at its emergency meeting in Vienna, as it tries to prop up falling prices. Oil prices have fallen to a 16-month low amid fears a global economic recession will cut demand
  • The UK economy shrank for the first time in 16 years between July and September, confirming that Britain is on the brink of recession.
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."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."
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."
Earnings fearsEarnings fears
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.