Business | Markets
World markets sink after Wall Street plunge
World stock markets fell sharply on Friday in the wake of a sell-off on Wall Street amid mounting concerns about a slumping US economy.
- AP
- Published: 16:52 September 5, 2008
London: World stock markets fell sharply on Friday in the wake of a sell-off on Wall Street amid mounting concerns about a slumping US economy.
Disappointing reports on US retail sales and jobless claims overnight undercut hopes for a late-year recovery in the world's biggest economy, a critical export market.
In Europe, Britain's FTSE-100 was down 0.87 per cent to 5,315.50, Germany's DAX lost 1.41 per cent to 6,191.16, and France's CAC 40 fell 0.95 per cent to 4,262.99.
In Moscow, the ruble-denominated RTS benchmark was down 6.51 per cent in afternoon trading, sinking to the 1,400-point level which has not been seen since June 2006.
European markets also made a poor start in Friday trading.
In Japan, the benchmark Nikkei 225 index sank 2.75 per cent. Hong Kong's Hang Seng index tumbled 2.24 per cent.
Markets in India, Australia and Singapore also were down sharply. China's Shanghai index slid 3.3 per cent to its lowest close in 21 months.
"The financials are once again under pressure following comments from Bill Gross at PIMCO, the world's largest bond fund, that implied the market was set to experience a financial tsunami," said Stephen Pope, chief global markets strategist for Cantor Fitzgerald.
"All banks are weaker, although with gloomy euro-zone economic news in the system, and a hawkish policy still persisting from the ECB, Irish and Spanish names are especially hard pressed," he added.
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