World markets back under pressure
Saturday 08 May 2010
Post-election uncertainty, the continuing eurozone sovereign debt crisis and incredulity about US stock market volatility combined to send share prices plummeting again yesterday, with the FTSE 100 index falling 138 points, or 2.6 per cent.
The falls capped a dismal few days for the UK stock market, which has now declined by 8 per cent since the bank holiday weekend. The FTSE 100's losses were the worse seen in a single week since the collapse of Lehman Brothers in 2008.
While the market was spooked by anxieties about a hung parliament, investors also took fright at further declines on European exchanges. Shares in France, Germany and Spain fell 4.6, 3.2 and 3.3 per cent respectively. The US stock market also continued its volatile run after the extraordinary plunges seen on Thursday afternoon. The Dow Jones opened down, with losses reaching 3 per cent at their worst, before the market began to recover, closing in on positive territory by lunchtime.
Regulators in the US promised an inquiry into Thursday's turmoil, which saw anxiety about the Greek debt crisis suddenly spiral into the worst plunge in the Dow Jones Industrial Average's history – only to rebound within half an hour.
The wild ride, in which the shares of several major companies sold for close to zero, left market professionals bewildered and nervous, and sparked recriminations between exchanges.
It was announced yesterday that trades in scores of different shares would be cancelled, and that the Securities and Exchange Commission, which regulates the stock market, and the Commodity Futures Trading Commission, which regulates stock-market derivatives, would try to get to the bottom of the chaos.
Fingers were immediately pointed at the super-fast computer-based trading programmes on the formal stock exchanges and on opaque trading platforms called "dark pools".
- 1 Mystery of the Siberian holes at the end of the world 'solved': Scientists offer explanation
- 2 Pope Francis issues top 10 tips for happiness
- 3 Disney heiress Abigail disowns her share of family profits in West Bank company
- 4 Israel's propaganda machine is finally starting to misfire
- 5 Sean Hannity reacts to Russell Brand's Israel-Gaza criticism: 'You're a dumb actor known for your failed marriage to Katy Perry'
Lost portraits of the Somme: 100 images of Tommies posing before they went over the top. Now can you help to identify them?
Mystery of the Siberian holes at the end of the world 'solved': Scientists offer explanation
Pope Francis issues top 10 tips for happiness
Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
Ashley Cole tweets unsettling meme of him stalking ex-wife Cheryl Cole and new husband Jean-Bernard Fernandez-Versini
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
- < Previous
- Next >
iJobs Money & Business
£300 - £350 per day: Orgtel: Financial Analyst, Forecasting, Halifax, Banking,...
£500 per day: Orgtel: Business Architect - Banking - Bristol - £500 per day A...
£200 - £500 per day + competitive: Orgtel: I am currently working on a large p...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...