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| US stocks slide amid credit fears | US stocks slide amid credit fears |
| (10 minutes later) | |
| Major US stock markets have opened down after confidence in the banking sector was dented further by the resignation of Citigroup's chief executive. | Major US stock markets have opened down after confidence in the banking sector was dented further by the resignation of Citigroup's chief executive. |
| Markets in Europe and Asia have also seen falls in reaction to Charles Prince's exit, the second departure of a leading banking boss within days. | Markets in Europe and Asia have also seen falls in reaction to Charles Prince's exit, the second departure of a leading banking boss within days. |
| The Dow Jones fell 0.51% to 13,525.5, the Nasdaq dropped 0.55% to 2,794.84, and the S&P slipped 0.6% to 1,500.7. | |
| Stock markets in London, Paris and Frankfurt all declined on Monday. | Stock markets in London, Paris and Frankfurt all declined on Monday. |
| Credit squeeze | Credit squeeze |
| The FTSE 100 benchmark index closed down 1.06% at 6,461.4 at the end of the trading session in London, with Barclays, Northern Rock and Alliance & Leicester were among the financial stocks seeing the largest falls. | The FTSE 100 benchmark index closed down 1.06% at 6,461.4 at the end of the trading session in London, with Barclays, Northern Rock and Alliance & Leicester were among the financial stocks seeing the largest falls. |
| In Frankfurt, the Dax index ended 0.53% lower at 7,807.55, while in Paris the benchmark Cac index slipped 0.63% to 5,684.62. | In Frankfurt, the Dax index ended 0.53% lower at 7,807.55, while in Paris the benchmark Cac index slipped 0.63% to 5,684.62. |
| The risk in the market is credit risk Jim Awad, WP Stewart Asset Management | The risk in the market is credit risk Jim Awad, WP Stewart Asset Management |
| By the close of trade in Asia the Hang Seng index was down 5% at 28,942.3 in Hong Kong, while in Japan the Nikkei had fallen 1.5% to 16,268.9. | By the close of trade in Asia the Hang Seng index was down 5% at 28,942.3 in Hong Kong, while in Japan the Nikkei had fallen 1.5% to 16,268.9. |
| Worries over banks' exposure to US sub-prime related debts has been causing market instability for several months. | Worries over banks' exposure to US sub-prime related debts has been causing market instability for several months. |
| Shares of Citigroup dropped almost 5% in afternoon US trade, and those in JP Morgan Chase fell 0.6%, paring earlier losses. | Shares of Citigroup dropped almost 5% in afternoon US trade, and those in JP Morgan Chase fell 0.6%, paring earlier losses. |
| Meanwhile shares in Merrill Lynch, Morgan Stanley and Bank of America all sunk, hitting 12-month lows before rebounding slightly as the session wore on. Goldman Sachs fell 4.17%. | Meanwhile shares in Merrill Lynch, Morgan Stanley and Bank of America all sunk, hitting 12-month lows before rebounding slightly as the session wore on. Goldman Sachs fell 4.17%. |
| Hong Kong shares were also battered by further delays to a scheme which will allow Chinese investors to access the city's market. | Hong Kong shares were also battered by further delays to a scheme which will allow Chinese investors to access the city's market. |
| 'More to come' | 'More to come' |
| "The risk in the market is credit risk," said Jim Awad, chairman of WP Stewart Asset Management in New York. | "The risk in the market is credit risk," said Jim Awad, chairman of WP Stewart Asset Management in New York. |
| "You're getting plenty of indications that there are more write-downs to come. The fear is that if you get the credit market seizing up again, that could affect the economy going forward." | "You're getting plenty of indications that there are more write-downs to come. The fear is that if you get the credit market seizing up again, that could affect the economy going forward." |
| It is feared that the current credit squeeze - triggered by banks' unwillingness to lend while they assess the size of potential sub-prime mortgage related losses - will hit growth in the global economy. | It is feared that the current credit squeeze - triggered by banks' unwillingness to lend while they assess the size of potential sub-prime mortgage related losses - will hit growth in the global economy. |
| Citigroup disclosed that its losses stemming from bad sub-prime related investments could amount to between $8bn and $11bn (£3.8bn and £5.2bn). | Citigroup disclosed that its losses stemming from bad sub-prime related investments could amount to between $8bn and $11bn (£3.8bn and £5.2bn). |
| Mr Prince's departure followed the departure of Merrill Lynch boss Stan O'Neal last week after the firm suffered its first quarterly loss in five years. | Mr Prince's departure followed the departure of Merrill Lynch boss Stan O'Neal last week after the firm suffered its first quarterly loss in five years. |
| Traders digesting the scale of the crisis in the US banking sector are worried about the exposure of European banks to worthless sub-prime related assets. | Traders digesting the scale of the crisis in the US banking sector are worried about the exposure of European banks to worthless sub-prime related assets. |