Trading in the U.S. fell, which was later mirrored by markets in the Far East.
The latest downturn for world markets followed a gloomy report from economists at investment bank Morgan Stanley, which slashed its forecasts for global growth.
But eurozone debt fears, poor economic data in the US, and fears over China raising interest rates and limiting its demand, all played their part in Thursday's rout.
Banking stocks were again the major casualties as the FTSE 100 Index slipped down again to below the 5,000 barrier, tumbling to 4,935 points.
The volatile FTSE opened at 5,083 and after fluctuating, sank to 4,935 points. Read More
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