FTSE 100 Index falls as economic crisis continues
World markets took the brunt over the uncertainty of the financial markets yesterday, as the FTSE 100, Nikkei 225 and the Dow Jones indexes fell by 10%.
The fall continues to be headlining news, as investors fear a global recession and early trading saw London’s FTSE 100 Index lose more than 400 points, lowering it to under the 4000 point level. Other markets also struggled, with Japan’s Nikkei 225 index down to its lowest point since ‘Black Monday’ in 1987 and the Dow Jones closing below 9000 points for the first time in 5 years.
Amongst the worst hit were banking stocks, with both the US governments bailout plan and the UK governments interest rate cut failing to win back investors. Halifax saw its shares drop by 24%, while both Lloyds TSB and Barclays also struggled with 14% falls.