Shares continue to fall as recession fears deepen

| October 27, 2008 | 0 Comments
”Shares

London’s FTSE 100 fell 5.6% to 3,665 at one point today, this represents the lowest level since April 2003 as investors continue to worry about the global economic slowdown.

Investors’ fears were brought to light after last week’s news that the British economy shrank for the first time since 1992, according to figures from the Office for National Statistics (ONS).

The ONS revealed that economic output fell by 0.5% and should the economy slow in the final quarter of 2008, the UK will be classed as being in recession.

Elsewhere around the world, Ireland is already in recession, while France is expected to fall into recession.

A report earlier this month from economic think tanks believe that Europe’s largest economy, Germany, is close to recession. Furthermore, there are signs that the US (the world’s largest economy) is already in recession.

Meanwhile, sterling plummeted again versus the dollar today, having fallen through the $1.60 mark for the first time in five years on Friday.

In just one week, sterling has fallen 12% after the Bank of England’s Governor and the Prime Minister admitted that the country was heading for a prolonged and painful recession.

In addition, the euro was lower, falling to $1.2377 - a level not experienced since April 2006.

Across the world, European markets have fallen around 5% following big losses in Asia. Hong Kong’s Hang Seng closed down 12.7%, while Japan’s Nikkei closed 6% down - its lowest close since 1982.

Today’s falls on the FTSE follow a dismal day last Friday when nearly £49 billion was wiped off the value of shares amid recession fears.

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