Stock market crash in slow motion
Updated on 16 August 2007
Red screens drenched the City in the worst day on the London Stock Exchange for four and a half years.
Turmoil, upheaval and panic selling. The language of the world's trading floors said it all today.
What began as a downturn in the US housing market, is now, a month on, a global crisis in the stock market that tonight showed no sign of easing.
FTSE falls
The FTSE 100 index lost more than 4 per cent of its value today in the worst day on the London Stock Exchange for four and a half years.
It is the most significant tumble in an awful August that has seen leading shares lose an eighth of their value.
That equates to £59.8bn, falling below the crucial 6000 barrier to close at 5858.9, its lowest point since September 2006.
Global losses
Share prices tumbled across Asia, recording the largest losses since 9/11. In Japan, the Nikkei index fell 2.7 per cent closing at 16,148, its lowest figure since last November.
Slump in stocks
The slump in credit markets has continued pulling the plug on a slew of prospective takeovers. Now, the chaos in the credit market has crashed into stock markets, particularly those exposed to this sudden drying up of credit.
Financial stocks and Banks were especially hard-hit. Big company pensions schemes have plunged £20bn into the red, having been in surplus in June.
Mortgage companies such as Northern Rock which specialise in raising money in those complex credit markets rather than from savers, were especially badly hit, down four per cent.
