This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6410629.stm

The article has changed 10 times. There is an RSS feed of changes available.

Version 5 Version 6
Global shares drop for fourth day World share slump hits fourth day
(about 3 hours later)
Global shares have fallen for a fourth day, though the sharp slump that spooked markets at the start of the week seemed to be running out of steam. Global shares have fallen for a fourth day as investors questioned valuations, and Wall Street headed for its worst week in more than four years.
US markets slid, with the Dow Jones down 0.5%, after consumer confidence figures disappointed the market. The S&P 500 and Nasdaq lost about 1%. In New York, the Dow Jones index lost 1% after consumer confidence figures disappointed the market. The S&P 500 dropped 1.1%, and the Nasdaq lost 1.5%. Earlier in the day most of Europe and Asia's main markets had declined.
Earlier in the day, European and Asian markets had declined, driven lower by concerns that prices were overvalued. The UK's FTSE 100 index, though little changed on Friday, lost 5% over the week, knocking £80bn off its value.
The UK's FTSE 100 index, while little changed on Friday, lost 5% this week.
'Very edgy''Very edgy'
Analysts said stocks had been due a correction, adding that the question now was by how much and how long it would continue. A number of issues have come to a head this week, and the decline in share prices was triggered on Tuesday by fears of a new tax in China.
This week's sell-off was sparked by fears of a new tax in China on Tuesday, and then spread to broader global economic issues. Since then investors have blamed issues as varied as the strength of the global economy, the outlook for corporate earnings and the effect of a stronger Japanese yen for their decision to dump equities.
Some market participants have raised the threat of a recession in the US, but many observers feel that this view is too extreme.Some market participants have raised the threat of a recession in the US, but many observers feel that this view is too extreme.
Instead, they are focusing on shorter-term issues such as currency fluctuations and inflation, and how they will impact on corporate earnings, experts said. Analysts said stocks had been due a correction, adding that the question now was by how much and how long it would continue.
"Everyone remains very edgy," one trader told Reuters. Last year, a drop in world stocks lasted for the best part of a month, and key markets tumbled almost 10% before recovering to their highest levels in recent years.
The UK's FTSE added 0.2 point to close at 6,116.2. In Germany, the Dax index lost 0.6%, and in France the Cac 40 shed 0.6%. Friday's sell-off was given extra impetus because investors did not want to go into the weekend holding large positions that could lead to losses when Asian and European markets opened on Monday, traders said.
Much of Friday's drop was about "covering risk for the weekend", said Ernie Ankrim of Russell Investment Group. "For the most part, traders don't want to be holding anything except for the most secure assets."
One trader told Reuters that "everyone remains very edgy".
'Irrational''Irrational'
Asian markets also gave a slightly mixed picture. The Singapore Straits Times Index lost 0.6% while Australian shares fell 0.4%. By the close of trading in London on Friday, the UK's FTSE had added 0.2 point to 6,116.2. In Germany, the Dax index lost 0.6%, and in France the Cac 40 shed 0.6%.
Asian markets gave a slightly more mixed picture. The Singapore Straits Times Index lost 0.6%, while Australia's main index fell 0.4%.
In Japan, Friday's closing losses on the Nikkei wiped out the last of the gains the index had so far made this year.
Shares in Hong Kong traded higher, with the Hang Seng index rising 0.3%.
"The market has been performing a bit irrationally in recent sessions amid sharp fluctuations," said Chen Huiqin, an analyst at Huatai Securities."The market has been performing a bit irrationally in recent sessions amid sharp fluctuations," said Chen Huiqin, an analyst at Huatai Securities.
In Japan, Friday's closing losses on the Nikkei wiped out the last of the gains the index had made so far made this year.
But shares in Hong Kong traded higher, with the Hang Seng index rising 0.3%.