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| Recession fears hit stock markets | Recession fears hit stock markets |
| (30 minutes later) | |
| Global shares have fallen amid fears of a US recession and slowing corporate profit growth. | Global shares have fallen amid fears of a US recession and slowing corporate profit growth. |
| The key US Dow Jones index was down 0.3% at 12,462.66, while the UK's FTSE 100 and Germany's Dax fell more than 1% and France's Cac was down 0.4%. | |
| Earlier, Japan's Nikkei index had hit its lowest level in more than two years, closing down 3.4% at 13,504.51. | Earlier, Japan's Nikkei index had hit its lowest level in more than two years, closing down 3.4% at 13,504.51. |
| The slide in share prices has been triggered by disappointing company earnings and weak US economic data. | The slide in share prices has been triggered by disappointing company earnings and weak US economic data. |
| "Nothing's new, everything's still terrible and there's a lot more bad news to come," said Joe Saluzzi at Themis Trading in Chatham, New Jersey. | "Nothing's new, everything's still terrible and there's a lot more bad news to come," said Joe Saluzzi at Themis Trading in Chatham, New Jersey. |
| Hong Kong's benchmark stock index, the Hang Seng, closed down 5.4% at 24,450.85 on Wednesday - its biggest one-day fall since the day after the 11 September attacks. | Hong Kong's benchmark stock index, the Hang Seng, closed down 5.4% at 24,450.85 on Wednesday - its biggest one-day fall since the day after the 11 September attacks. |
| Further declines? | Further declines? |
| Analysts warned that more falls may be on the way as concerns about the corporate and economic environment persist. | Analysts warned that more falls may be on the way as concerns about the corporate and economic environment persist. |
| Figures from the Labor Department released on Wednesday showed that US consumer prices rose in 2007 at the fastest rate since 1990. | Figures from the Labor Department released on Wednesday showed that US consumer prices rose in 2007 at the fastest rate since 1990. |
| US bank JP Morgan Chase also announced that its earnings for the last three months of 2007 fell 34% as a result of its exposure to bad US mortgage loans. | US bank JP Morgan Chase also announced that its earnings for the last three months of 2007 fell 34% as a result of its exposure to bad US mortgage loans. |
| But its shares rose by 3.6% because the exposure was relatively light in comparison with some other banks. On Tuesday, Citigroup had announced that its exposure was more than $18bn. | But its shares rose by 3.6% because the exposure was relatively light in comparison with some other banks. On Tuesday, Citigroup had announced that its exposure was more than $18bn. |
| Wells Fargo, one of the American largest banks and mortgage lenders, also reported a fall in fourth-quarter profit, the first decline in more than six years. | Wells Fargo, one of the American largest banks and mortgage lenders, also reported a fall in fourth-quarter profit, the first decline in more than six years. |
| However, analysts said that the JP Morgan and Wells Fargo results showed that banks could still make a profit despite the global credit crunch. | However, analysts said that the JP Morgan and Wells Fargo results showed that banks could still make a profit despite the global credit crunch. |
| Tech shares sell-off | Tech shares sell-off |
| Uncertainty is always one of the worst scenarios for stocks John Wilson, Morgan Keegan | Uncertainty is always one of the worst scenarios for stocks John Wilson, Morgan Keegan |
| Intel, which makes microchips that power most of the world's computers, added to the gloomy outlook. Its quarterly results, released late on Tuesday, disappointed many investors and its sales forecast was lower than had been expected. | Intel, which makes microchips that power most of the world's computers, added to the gloomy outlook. Its quarterly results, released late on Tuesday, disappointed many investors and its sales forecast was lower than had been expected. |
| The company's shares fell 12% in early trade on Wednesday. | The company's shares fell 12% in early trade on Wednesday. |
| The negative report from Intel, spurred a sell-off in technology firms worldwide on the belief that they would not be able to sustain their current rate of earnings growth in the face of slower consumer and business spending. | The negative report from Intel, spurred a sell-off in technology firms worldwide on the belief that they would not be able to sustain their current rate of earnings growth in the face of slower consumer and business spending. |
| South Korean mobile phone maker LG Electronics and LCD flat-screen TV maker LG Philips both fell almost 5% in earlier Asian trading, while German chipmaker Infineon dropped 3.4% in Europe. | South Korean mobile phone maker LG Electronics and LCD flat-screen TV maker LG Philips both fell almost 5% in earlier Asian trading, while German chipmaker Infineon dropped 3.4% in Europe. |
| "This market is clearly being driven by the fear that the economy is rolling over and that it may be a global phenomenon," said John Wilson, an equity strategist at Morgan Keegan. | "This market is clearly being driven by the fear that the economy is rolling over and that it may be a global phenomenon," said John Wilson, an equity strategist at Morgan Keegan. |
| "Uncertainty is always one of the worst scenarios for stocks," he added. | "Uncertainty is always one of the worst scenarios for stocks," he added. |