Investors are bracing themselves for one of the most difficult years in stock market history after new figures showed more than $5 trillion (£2.7 trillion) was wiped off the value of shares across the globe in January alone. The loss represents one of the worst starts to a year since records began - a stark indication that markets anticipate a global recession that could last for several years. In London, the FTSE 100 lost £77bn in one day alone - 21 January - in frenetic dealing dubbed a second Black Monday after the great crash of 1987. Although shares have since stabilised somewhat, there is still turmoil in the banking and finance sector.
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Cost of world shares turmoil is £2.7 trillion
Thursday, February 14th, 2008Black Monday - Biggest stock market drop since 9/11
Tuesday, January 22nd, 2008Fear that America was about to tip into recession yesterday wiped £77bn off the value of FTSE shares, the biggest one day plunge in London since the terrorist attacks of September 2001. Speculation that booming economic powerhouse China could be infected by the sub-prime crisis helped to trigger a global sell-off which resumed again this morning. Shares rebounded after the US Federal Reserve slashed interest rates by 0.75%, their biggest rate cut in living memory, in an attempt to pull the world’s biggest economy away from a recession. The pain on the British High Street was further evident today when the shoe-shops chain Dolcis founded in 1863, went into administration with accountants KPMG now running the business.
