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| Version 9 | Version 10 |
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| Stocks plunge on financial fears | Stocks plunge on financial fears |
| (10 minutes later) | |
| Stock markets have fallen worldwide, rattled by fears that turmoil in the financial sector is far from over. | Stock markets have fallen worldwide, rattled by fears that turmoil in the financial sector is far from over. |
| On Wall Street, the US Dow Jones index fell below 7,000 points for the first time since 1997. | On Wall Street, the US Dow Jones index fell below 7,000 points for the first time since 1997. |
| In the UK, the FTSE 100 index briefly hit a six-year low. Markets elsewhere in Europe also fell sharply. | In the UK, the FTSE 100 index briefly hit a six-year low. Markets elsewhere in Europe also fell sharply. |
| Confidence was hit by a fresh $30bn bail-out of US insurance giant AIG following a record $62bn loss, and by HSBC's plans to raise £12.5bn. | Confidence was hit by a fresh $30bn bail-out of US insurance giant AIG following a record $62bn loss, and by HSBC's plans to raise £12.5bn. |
| The Dow Jones fell by 4.2% to end at 6,763, the lowest closing level since April 1997. | The Dow Jones fell by 4.2% to end at 6,763, the lowest closing level since April 1997. |
| The broader Standard & Poor's 500 index was down 4.7% at 701, briefly falling below the 700 level for the first time since October 1996. | |
| "We do feel that things can improve but it is going to be years before we get back to levels we saw in the markets a year ago," said David Chalupnik, head of equities at First American Funds. | "We do feel that things can improve but it is going to be years before we get back to levels we saw in the markets a year ago," said David Chalupnik, head of equities at First American Funds. |
| Profits hit | Profits hit |
| HSBC said the £12.5bn it is seeking to raise from shareholders to both shore-up its balance sheet and to grow through "targeted acquisitions". | HSBC said the £12.5bn it is seeking to raise from shareholders to both shore-up its balance sheet and to grow through "targeted acquisitions". |
| You're seeing the US is sinking lower and lower, and we're still desperately searching for a bottom John Mar, Daiwa Securities SMBC Co | You're seeing the US is sinking lower and lower, and we're still desperately searching for a bottom John Mar, Daiwa Securities SMBC Co |
| The bank also said pre-tax profits for 2008 were $9.3bn (£6.5bn), down 62% on the previous year after it wrote down the value of US assets by more than $10bn. | The bank also said pre-tax profits for 2008 were $9.3bn (£6.5bn), down 62% on the previous year after it wrote down the value of US assets by more than $10bn. |
| "The big issue [for markets] is the fact that HSBC - one of the biggest and strongest banks around - is having such problems," said Jonathan Jackson and Killik & Co. | "The big issue [for markets] is the fact that HSBC - one of the biggest and strongest banks around - is having such problems," said Jonathan Jackson and Killik & Co. |
| "It's difficult to see any trigger for an upturn in the short term," he added. | "It's difficult to see any trigger for an upturn in the short term," he added. |
| Huge bail-out | Huge bail-out |
| Markets were also worried by the news coming from AIG. | Markets were also worried by the news coming from AIG. |
| The firm reported a loss of $61.7bn for the final three months of 2008 - the largest quarterly loss in corporate history - and said it would receive an extra $30bn from the US government as part of a revamped rescue package. | The firm reported a loss of $61.7bn for the final three months of 2008 - the largest quarterly loss in corporate history - and said it would receive an extra $30bn from the US government as part of a revamped rescue package. |
| AIG has already received $150bn in financial support - the biggest bail-out by far of any US company. | AIG has already received $150bn in financial support - the biggest bail-out by far of any US company. |
| The Federal Reserve and the Treasury said that AIG posed a "systemic risk" to the global financial system. | The Federal Reserve and the Treasury said that AIG posed a "systemic risk" to the global financial system. |
| "The potential cost to the economy and the taxpayer of government inaction would be extremely high," they said. | "The potential cost to the economy and the taxpayer of government inaction would be extremely high," they said. |
| Gloomy news | Gloomy news |
| Weak manufacturing figures in both the UK and eurozone also placed downward pressure on European markets. | Weak manufacturing figures in both the UK and eurozone also placed downward pressure on European markets. |
| The Purchasing Managers' Index (PMI), compiled by research group Markit, showed that manufacturing activity fell in February compared with the previous month. | The Purchasing Managers' Index (PMI), compiled by research group Markit, showed that manufacturing activity fell in February compared with the previous month. |
| "Once again, the extreme weakness in manufacturing activity in February was widespread across the eurozone, with all countries seeing a very sharp contraction in activity," said Howard Archer at IHS Global Insight. | "Once again, the extreme weakness in manufacturing activity in February was widespread across the eurozone, with all countries seeing a very sharp contraction in activity," said Howard Archer at IHS Global Insight. |
| The figures were particularly badly received because manufacturing activity in both the UK and the eurozone rose slightly in January. | The figures were particularly badly received because manufacturing activity in both the UK and the eurozone rose slightly in January. |
| By the end of trading, the UK's FTSE 100 was down 5.3%, Germany's Dax was 3.5% lower and France's Cac 40 had lost 4.7%. | By the end of trading, the UK's FTSE 100 was down 5.3%, Germany's Dax was 3.5% lower and France's Cac 40 had lost 4.7%. |
| Weak growth | Weak growth |
| Earlier in Asia, Japan's Nikkei index closed down 3.8% at 7,280.15, and Hong Kong's Hang Seng index fell 3.9% | Earlier in Asia, Japan's Nikkei index closed down 3.8% at 7,280.15, and Hong Kong's Hang Seng index fell 3.9% |
| Weak economic data from China and South Korea had underscored fears about Asia's export-dependent economies. | Weak economic data from China and South Korea had underscored fears about Asia's export-dependent economies. |
| China's manufacturing sector declined further last month, while South Korean imports and exports also slumped. Japan reported a steep drop in car sales. | China's manufacturing sector declined further last month, while South Korean imports and exports also slumped. Japan reported a steep drop in car sales. |
| Monday's shares slide followed a poor performance on Wall Street on Friday after data showed that US economic growth was even weaker than thought. | Monday's shares slide followed a poor performance on Wall Street on Friday after data showed that US economic growth was even weaker than thought. |
| "The Tokyo market is being hit directly by the lower share prices overseas," said Toshihiko Matsuno, research head at SMBC Friend Securities. | "The Tokyo market is being hit directly by the lower share prices overseas," said Toshihiko Matsuno, research head at SMBC Friend Securities. |
| John Mar, co-head of sales trading at Daiwa Securities SMBC Co. said: "You're seeing the US is sinking lower and lower, and we're still desperately searching for a bottom." | John Mar, co-head of sales trading at Daiwa Securities SMBC Co. said: "You're seeing the US is sinking lower and lower, and we're still desperately searching for a bottom." |