Global Markets Shaky as Fears Persist, Credit Remains Frozen
Markets lost ground, erasing earlier gains as nervous investors remain concerned that the financial crisis would lead to a world recession, and after a coordinated rate cut by major central banks failed to unlock frozen credit markets, putting pressure on officials to take further action.
US shares opened higher but then fell after a six-day losing streak in which they have shed almost 15 percent.
The US market faces additional uncertainty after a ban on short-selling of financial stocks expired at midnight on Wednesday.
European stocks also were higher but then fell back a day after hitting near five-year lows. Asian stocks were mixed as Japan's Nikkei dipped to its lowest close in more than five years after a volatile day .
Three-month borrowing on interbank markets remained expensive near this week's highs across all currencies, and lending beyond a week or two remained frozen, traders said.
Finance ministers and central bankers from the Group of Seven major industrial nations will meet in Washington on Friday with the chance to take more concerted action.Gl
Published on October 9, 2008
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