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."
South Korea ferry passengers who were told to stay put 'got trapped' aboard sinking ship
Are beards attractive? Ryan Gosling says yes, but science says no. Take the A-list facial hair challenge and find out who's right
Andre Johnson: Wu-Tang Clan-discovered rapper severed his penis and jumped from LA building
Oscar Pistorius trial: Defence witness 'unqualified' to testify
Oscar Pistorius trial: Defence witness contradicts athlete's version in new blow for defence team
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
US Navy christens huge $3 billion destroyer ship USS Zumwalt that appears as a fishing boat on enemy radar
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
Nigel Farage on Have I Got News For You: Ukip leader ridiculed over expenses and party 'fruitcakes'
Nigel Farage: I’m taking on the status quo, and the Establishment’s fighting back
- 1 Poveglia: 'World's most haunted island' up for sale...is anyone brave enough to buy it?
- 2 Babies cry at night to stop mothers procreating, scientists claim
- 3 24 people applied for the 'world's toughest job', here are their interviews
- 4 Andre Johnson: Wu-Tang Clan-discovered rapper severed his penis and jumped from LA building
- 5 Mrs Doubtfire 2: Robin Williams set to star in sequel to 1993 comedy
iJobs Money & Business
£150.00 per week: QA Apprenticeships: This company has been providing on site ...
£221.25 per week: QA Apprenticeships: This company is a well established Inter...
£40000 - £50000 per annum: Harrington Starr: Client Relationship Manager - SQL...
£35000 - £50000 per annum: Pro-Recruitment Group: Take your chance to join the...