sHares crasH on debT fears; Footsie loses pounds 46bn.
SHARES nosedived yesterday as eurozone debt and US recession fears sparked panic in financial markets around the world.
The crisis wiped pounds 46billion off the FTSE index in the UK, while the Dow Jones in New York had its biggest one-day fall for three years.
Investors panicked after economic data revealed America might slip into recession, while Italy and Spain may need bailouts.
European Commission president Jose Manuel Barroso warned the sovereign debt crisis was spreading.
The FTSE plunged three per cent to 5393.1 - its lowest point for nearly a year.
Bank shares were among the biggest casualties.
Lloyds fell 9.9 per cent and Royal Bank of Scotland shares dropped seven per cent.
The Dow slumped 4.3 per cent - the largest single-day drop since October 2008.
The S&P 500 index and Nasdaq in New York fared worse, with both finishing down almost five per cent.
Around 3.5 per cent was wiped off Germany's DAX.
Milton Ezrati, market strategist at US investment firm Lord Abbett, said: "People are throwing in the towel because they can't find relief on any front."
Weak jobs data from the US raised further concerns about the strength of the economic recovery there.
Wall Street's financial powerhouses were also hit hard, with JP Morgan down five per cent and Bank of America falling 7.4 per cent.
In a letter to European governments, Barroso warned that the eurozone debt problem was spreading beyond Greece, Portugal and Ireland.
He said markets "remain to be convinced that we are taking appropriate steps to resolve the crisis".
He called on them to give their "full backing" to the euro, amid growing fears that Spain and Italy may be dragged into the debt crisis and need financial bailout packages.
Record Finance: Page 57
PANICJ Share values slumped on the New York Stock Exchange
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|Publication:||Daily Record (Glasgow, Scotland)|
|Date:||Aug 5, 2011|
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