World shares have fallen amid concerns that the world economy will enter a protracted downturn.
World stockmarkets have fallen amid growing concerns that the world economy will enter a protracted downturn.
The US Dow Jones index Industrial Average fell 2.3% in early trade while the wider S&P 500 Index shed 3%.
The US Dow Jones industrial average fell 2.3% before recovering to gain 0.9% in early afternoon trading.
London's FTSE 100, the Paris-based Cac and Frankfurt's Dax were all down more than 3% in afternoon trade. Earlier, Asian shares had fallen sharply.
Earlier, European markets all closed sharply lower on recession fears, with London, Paris and Frankfurt all down more than 3%.
Concerns over a sharp slowdown in US factory activity added to worries about the strength of the economy.
Concerns over a sharp slowdown in US factory activity added to worries about the strength of the economy.
On Wednesday, the Dow Jones index had fallen back 5% to below the 8,000 mark after the US central bank cut its economic growth forecasts for 2009.
In Asia on Thursday, Japan's Nikkei index ended 6.8% lower and Hong Kong's main index fell more than 4%.
US slowdown
US slowdown
A business survey from the Philadelphia Federal Reserve showed that factory activity covering the key areas of eastern Pennsylvania, southern New Jersey and Delaware fell by more than forecast in November.
A business survey from the Philadelphia Federal Reserve showed that factory activity covering the key areas of eastern Pennsylvania, southern New Jersey and Delaware fell by more than forecast in November.
The index, which is seen as a key gauge of the future state of US manufacturing, slipped to minus 39.3 from minus 37.5 in October.
The index, which is seen as a key gauge of the future state of US manufacturing, slipped to minus 39.3 from minus 37.5 in October.
And new claims for unemployment benefits leapt last week to their highest in 16 years, according to the US Labor Department.
And new claims for unemployment benefits leapt last week to their highest in 16 years, according to the US Labor Department.
"The unemployment data was yet another ugly data point in a seemingly never ending stream of poor economic numbers," said Michael Wittner, global head of oil research at Societe Generale.
"The unemployment data was yet another ugly data point in a seemingly never ending stream of poor economic numbers," said Michael Wittner, global head of oil research at Societe Generale.
The White House indicated on Thursday that US President George W Bush would approve legislation to increase unemployment benefits.
The White House indicated on Thursday that US President George W Bush would approve legislation to increase unemployment benefits.
On Wednesday, the Dow Jones index fell back 5% to below the 8,000 mark after the US central bank cut its economic growth forecasts for 2009.
In Asia on Thursday, Japan's Nikkei index ended 6.8% lower and Hong Kong's main index fell more than 4%.
Mounting problems
Mounting problems
The deepening global recession is being felt in a number of ways:
Mining shares have been hit hard on fears that demand for steel and other raw materials will be hit as the economy slows. Steel giant Arcelor-Mittal lost 8% and Vedanta Resources lost 8.5%
Oil shares were among the main fallers with BP, Royal Dutch Shell and Total all at least 5% lower as sweet crude oil fell below $50 a barrel.
Japan's exports to Asia dropped in October for the first time in six years
Job losses are mounting worldwide, with aerospace firm Rolls Royce, AstraZeneca and French carmaker Peugeot Citroen announcing a total of 6,100 cuts
China has warned its employment outlook is "grim", amid worries that economic problems could lead to social unrest
Switzerland has cut its key interest rate to 1% in a surprise move.
The IMF has approved a $2.1bn (£1.4bn) loan for Iceland. Turkey is set to agree to a precautionary stand-by deal with the IMF soon
Retail sales fell and public sector borrowing rose in the UK.
The deepening global recession is being felt in a number of ways:
Mining shares have been hit hard on fears that demand for steel and other raw materials will be hit as the economy slows. Steel giant Arcelor-Mittal lost 8% and Vedanta Resources lost 8.5%
Oil shares were among the main fallers with BP, Royal Dutch Shell and Total all at least 5% lower as sweet crude oil fell below $50 a barrel.
Japan's exports to Asia dropped in October for the first time in six years
Job losses are mounting worldwide, with aerospace firm Rolls Royce, AstraZeneca and French carmaker Peugeot Citroen announcing a total of 6,100 cuts
China has warned its employment outlook is "grim", amid worries that economic problems could lead to social unrest
Switzerland has cut its key interest rate to 1% in a surprise move.
The IMF has approved a $2.1bn (£1.4bn) loan for Iceland. Turkey is set to agree to a precautionary stand-by deal with the IMF soon
Retail sales fell and public sector borrowing rose in the UK.
What is your reaction to the stock market losses? Have you been affected by the downturn? You can send us your experiences using the form below:
What is your reaction to the stock market losses? Have you been affected by the downturn? You can send us your experiences using the form below:
