World stock markets slump
Published March 17th, 2008
Markets from New York to Tokyo have recorded heavy losses in reaction to the emergency bailout of US investment bank Bear Stearns over the weekend.
In New York the Dow Jones Industrials tumbled 194 points, more than 1.5%, in early trading before recovering.
London’s FTSE 100 index was down 2.7%, in Paris the Cac 40 slumped 2.9% and Frankfurt’s Dax fell 4.1%.
The Bank of England on Monday made an extra £5bn ($10bn) available for UK banks to borrow to ease credit fears.
The money was five times over-subscribed.
Meanwhile, on the markets US, UK and European banks were hammered; Lehman Brothers fell 30%, UBS lost 13%, HBOS 10% and Commerzbank fell 7.9%.
Investors are worried that the collapse of Bear Stearns, one of Wall Street’s biggest names, is a sign that the credit crunch is getting worse and lending might seize up.
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