World markets continue to fall

Oct 8 2008

EUROPEAN markets all fell in early trading amid continuing fears about the state of credit markets, despite Britain's £50 billion rescue package for the banking system.
 Banking stocks were among the biggest fallers across European markets, with Credit Suisse, BNP Paribas and Societe Generale some of the worst hit.
 However British banks fared slightly better after the government’s announcement that it stands ready to take stakes in banks and give them fresh capital.
 By mid-morning the CAC-40 index in France was 229.33 points, or 6.1%, lower at 3,502.89. Germany’s DAX was down 323.99, or 6.1%, at 5,002.64.

• Asian stock markets plunged today as fears grew over the deepening world financial crisis.
 Japan’s Nikkei stock index was one of the worst hit, plummeting 9.4% to close at a five-year low.
 The benchmark index nose-dived 952.58 points to 9,203.32, the lowest finish since June 2003. The index has lost 24% in the last two weeks. The dollar also briefly fell below 100 yen.

• The Dow Jones industrial average lost 508.39 points, or 5.11%, to close at 9,447.11 last night, its lowest level since September 30, 2003.
 In New York yesterday, the Dow lost more than 5% despite efforts by the Federal Reserve to reinvigorate the dormant credit markets by invoking emergency powers to lend money to companies outside the financial sector and buy up mounds of commercial paper, the short-term debt that firms use to pay for everyday expenses like salaries and supplies.
 Federal Reserve Chairman Ben Bernanke warned in a speech yesterday that the financial crisis could prolong the difficulty the economy is facing.
 While his remarks were widely regarded as a sign that an interest rate cut could be in the offing, Wall Street appeared little comforted and focused on his downbeat assessment.

• Australia’s stock market plummeted nearly 5% today amid anxiety about the spreading global financial crisis.
Australia’s benchmark S&P/ASX200 closed down 230.6 points, or 4.99%, to 4,388.1. The drop wiped out a 1.72% gain yesterday after the country’s central bank cut its key interest rate by one percentage point.