Global stock markets tumble
Stock markets in the US and Europe tumbled on Thursday after Chinese authorities failed to deliver a stimulus package expected by many investors and European central banks slashed interest rates in response to a worsening recession.
The global turmoil combined with continuing concerns about US banks – Citigroup fell below $1 a share at one point – to send the S&P 500 skidding 4 per cent to its lowest level since September 1996. Germany’s Dax lost 5 per cent, France’s Cac 40 fell 4 per cent and the UK’s FTSE 100 dropped 3 per cent.
Asian markets continued the rout on Friday, though losses were less dramatic than in the US. Tokyo’s Nikkei average slid 3.1 per cent and the MSCI index of Asia-Pacific stocks outside Japan was down 0.9 per cent.