Stock markets are continuing to panic in the face of uncertainty in the global economy. President George W Bush has promised the American people the US government is working "aggressively" to restore stability to the economy, after Wall Street shares fell sharply on the opening in volatile trading.
In London, the FTSE 100 index ended down almost 9% before a meeting of the finance ministers from the Group of Seven (G7) most-developed nations. France's Cac index closed down 7.7%, Germany's Dax lost 8.4% in a day of heavy selling, and Japan's Nikkei stock index plunged 9.62%, the biggest loss since "Black Monday" in October 1987. Shares in Australia, Hong Kong and Singapore all plummeted, while Moscow and Jakarta stock markets remain suspended because of excessive volatility. The Vienna stock market fell 10% on re-opening after trading was suspended on Friday morning.
The British pound tumbled to a five-year low against the US dollar to trade at $1.6902 at one point, but recovered later. It also fell against the euro to 1.245 euros.
Oil prices fell to a one-year low, with US light crude dropping to $77.99. Back in July it hit a record high of $147.27.
In London, the FTSE 100 index ended down almost 9% before a meeting of the finance ministers from the Group of Seven (G7) most-developed nations. France's Cac index closed down 7.7%, Germany's Dax lost 8.4% in a day of heavy selling, and Japan's Nikkei stock index plunged 9.62%, the biggest loss since "Black Monday" in October 1987. Shares in Australia, Hong Kong and Singapore all plummeted, while Moscow and Jakarta stock markets remain suspended because of excessive volatility. The Vienna stock market fell 10% on re-opening after trading was suspended on Friday morning.
The British pound tumbled to a five-year low against the US dollar to trade at $1.6902 at one point, but recovered later. It also fell against the euro to 1.245 euros.
Oil prices fell to a one-year low, with US light crude dropping to $77.99. Back in July it hit a record high of $147.27.
Worryingly Morgan Stanley is fighting persistent rumours about its financial condition, as Moody's said it was reviewing the credit rating of the financial services firm for a possible downgrade. Morgan Stanley employs about 48,000 people at 600 offices in 35 countries. Last month, it was announced that Japanese banking giant Mitsubishi UFJ Financial Group would pay $9bn (£5.2bn) for a 21% stake in the 73-year-old American bank. The transaction is due to close next Tuesday, but in the midst of recent events, concerns over the completion of the Mitsubishi deal caused a dramatic fall in Morgan Stanley's stock price. Goldman Sachs also saw its stock drop by 12% yesterday.
Fear grips global stock markets
If the rumours are true, then Morgan Stanley is in for a very long weekend. Anything in these troubled times appears possible....and everyone appears vulnerable.
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