Stock Markets Plummet Worldwide
Global share markets are falling amid investors' widening fears of a sustained worldwide economic recession.
Wall Street tumbled sharply in early trading, following similar falls in markets across Europe and Asia.
The Dow Jones Industrial Average fell nearly 5% during the morning session, while the hi-tech Nasdaq index declined by more than 4%.
On European markets, London dropped 7%, Frankfurt plummeted more than 8% and Paris was down more than 6%.
Investors have been dumping shares worldwide because of gloomy prospects for the global economy - and are looking at other forms of investment.
Amid wider signs of the global economic slowdown:
* Asian shares tumbled, with Tokyo down 9.6%, Seoul plunging 10.6% and Hong Kong falling 8.3%
* Oil prices have continued to fall, despite Opec's efforts to steady prices by cutting output by 1.5 million barrels a day. London Brent dropped $4.42 to $61.50 a barrel
* The UK economy shrank for the first time in 16 years between July and September, confirming that Britain is on the brink of recession
* The pound saw its biggest one-day drop against the dollar since 1992 falling to $1.52, its lowest level in six years
* The euro dropped to $1.25, its lowest level for two years, on expectations of eurozone interest rate cuts and slowing economic growth
* In Moscow, share trading was suspended on both main share indexes until 28 October, after they plunged more than 10%.
Global money markets have showed renewed signs of stress, despite the billions of dollars that central banks and governments have pumped into the markets in recent weeks.
Investors worldwide are worried about falling share prices and the possibility of companies defaulting on their debts.
As a result, they have been selling shares in markets across the globe and switching to less risky forms of investments, such as government securities.
Published on October 24, 2008
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