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/7105020.stm

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
World shares weak on US woes World markets slump on US woes
(about 9 hours later)
US and European shares have tumbled, hurt by a weak dollar and fears of a US economic slowdown. US and European shares plunged on Wednesday, damaged by a weak dollar, an oil price spike and continued fears for the US economy.
On Wall Street the Dow Jones index was down more than 100 points in early trading, though a surging oil price boosted oil stocks. On Wall Street the Dow Jones index went into the Thanksgiving holiday having slumped by more than 200 points.
The UK's FTSE 100 fell 1.75% to 6,117.8 points by 1520 GMT, Germany's Dax index lost 1.6% to 7511.3 points, while France's Cac slipped 1.9% to 5,405.3. The UK's FTSE 100 closed 2.5% down while Germany's Dax index lost 1.5% and France's Cac slipped 2.3%.
The US Federal Reserve cut its growth forecast on Tuesday. The heavy falls came a day after the US Federal Reserve cut its growth forecast - stoking fears of a slowdown.
This stoked fears of a economic slowdown in the US.
The central bank now sees the US economy growing by between 1.8% and 2.5% in 2008, compared to its previous forecast of between 2.5% to 2.75%.The central bank now sees the US economy growing by between 1.8% and 2.5% in 2008, compared to its previous forecast of between 2.5% to 2.75%.
And this saw the dollar hitting yet another low against the dollar against the euro, which hit a an all-time peak of 1.4870 dollars in Wednesday's trading.
Financial jittersFinancial jitters
Almost all major shares were trading lower in the US where the Dow Jones was 112. 2 points down at 12,898 points while the Nasdaq lost 1.1% to 2,568.72 by 1540 GMT. In the US the worries saw the Dow Jones index plummeting 211 points, 1.6% to 12,799 while the Nasdaq fell 1.3%, 34.7 points to 2,562.2.
"We just can't seem to break free of the financial concerns that are out there," said Bucky Hellwig, of Alabama-based Morgan Asset Management
"The unwinding of the real estate and the mortgage market continues to weigh on investor concerns."
Earlier Japan's Nikkei-225 index had lost 2.5% and the Hang Seng shed 4.2%.Earlier Japan's Nikkei-225 index had lost 2.5% and the Hang Seng shed 4.2%.
In the UK, revised growth forecast hit financial stocks hardest.In the UK, revised growth forecast hit financial stocks hardest.
"There is so much uncertainty out there, the market is probably quite good value but no one has got the guts to backing the truck up and buying it in," Cantor Index's David Buik said."There is so much uncertainty out there, the market is probably quite good value but no one has got the guts to backing the truck up and buying it in," Cantor Index's David Buik said.
Oil reaching an overnight high of $99.29 per barrel lifted Royal Dutch Shell and BP shares, which clocked gains of 2.3% and 0.4% while in the US, Exxon Mobil, which saw its biggest one-day rise in five years on Tuesday, added a further 0.25%. Oil reaching a high of $99.29 per barrel lifted Royal Dutch Shell which clocked gains of 1.8%.
Falling share prices boosted demand for government bonds, seen as a safe haven in troubled times.Falling share prices boosted demand for government bonds, seen as a safe haven in troubled times.
Dollar pressureDollar pressure
The weaker growth outlook pushed the dollar to another record low against the euro and a two-year yen low overnight.
The continuing dollar weakness has been sparked by the US mortgage debt crisis, which has led to a growing number of American banks revealing multi-million dollar losses.The continuing dollar weakness has been sparked by the US mortgage debt crisis, which has led to a growing number of American banks revealing multi-million dollar losses.
US Treasury Secretary Henry Paulson told the Wall Street Journal on Tuesday that the number of potential home loan defaults "will be significantly bigger" in 2008 than in 2007. US Treasury Secretary Henry Paulson told the Wall Street Journal that the number of potential home loan defaults "will be significantly bigger" in 2008 than in 2007.
Analysts now expect the Federal Reserve to cut US interest rates further when it meets in December in an effort to ease problems in both the housing and credit markets.Analysts now expect the Federal Reserve to cut US interest rates further when it meets in December in an effort to ease problems in both the housing and credit markets.
"Investors are pricing in a cautious outlook for the U.S. economy and its indicators until the year end," said Kang Hyun-chul, an analyst of Korea's Woori Investment & Securities. As worries over the economy continued, investors turned to the safety of government securities, pushing the yield on the Treasury's 10-year note below 4% for the first time since 2005.