FTSE falls for eighth day
Wednesday 23 November 2011
Growing fears that the world will slide back into recession have triggered London's blue chip shares index's longest losing streak for eight years.
The FTSE 100 Index fell 67 points to 5139.8, its eighth day of losses in a row, and its worst run since January 2003 when markets were gripped by recession fears after the dot-com bubble burst.
Today's falls came as data revealed that China's manufacturing sector contracted in October, adding to fears that the eurozone will collapse under its debt mountain and politicians in the US will fail to reach agreement on a deficit reduction plan.
Banks were among the biggest fallers, with taxpayer-backed Royal Bank of Scotland down 6% to a fresh two-and-a-half-year low.
Fears over the eurozone debt crisis escalated when a German debt auction attracted surprisingly weak interest.
This was taken as a sign that Europe's biggest economy is not immune to debt crisis ripping through the currency bloc and triggered fresh worries that contagion is spreading to the stronger nations helping to keep the euro afloat.
Meanwhile, there were further fears that France could suffer a credit ratings downgrade amid speculation it will have to absorb more of the losses from the failed Dexia bank.
Yusuf Heusen, a trader at at IG Index, said markets were "steeped in gloom" and "the barrage of bad news shows no sign of relenting".
He added: "This morning's poorly received German bond auction was the latest reminder as to just how nervy investors are over the eurozone debacle.
"With overnight news of manufacturing in China slowing too, the real risk is that we're standing on the brink of a full-blown global recession."
- 1 Jeremy Clarkson 'sees no problem' with his racist language on Top Gear, says BBC
- 2 'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
- 3 Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
- 4 London restaurant 34 creates champagne glass modelled on Kate Moss’ left breast
- 5 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
Russell Brand opposes anti-Semitism after death threats: 'We must disavow all forms of prejudice that lead to exclusion and execution'
James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – as hunt begins for killer
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
Microbial life found living on the exterior of the International Space Station, say reports
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Bin bag full of cats' heads discovered near Manchester's Curry Mile
Disgusting, frustrating, but intriguing: how the country really feels about its politicians
iJobs Money & Business
£30000 - £40000 per annum + benefits+bonus+package: Harrington Starr: C#.NET ...
£20000 - £30000 per annum + benefits+bonus+package: Harrington Starr: Junior D...
£550 - £650 per day: Orgtel: Business Analyst - Traded Credit Risk - Investmen...
£55000 per annum: Harrington Starr: A financial software vendor at the forefro...