By Max Clarke
London’s financial market took another hit today, suffering its fourth consecutive night of 100-point losses for the first time in the index’s 27-year history.
More than £200bn has been struck off the value of shares this week, following the upheaval wrought by yesterday’s downgrading by Standard & Poor of the US’ debt.
Responding to the threat of a return to global recession, oil prices fell by 3%, translating to a real-term reduction in the cost of petrol by around 2p.
Efforts by the European Central Bank to intervene and keep the cost of Spanish and Italian sovereign bonds low in a bid to reassure investors have had little effect, and both of the trillion dollar economies are in danger of a catastrophic default.
Investor confidence remains depressed, with Germany’s DAX- previously buoyant during the crisis- dropping 2% this morning, matching similar losses in London and Paris.
Calls by Obama to reassure investors have had little effect, as Markets in South Korea dipped by up to 3.64%- second in value only to the US’ Dow Jones, falling 5.6%.
Futures traders are beginning to approach markets in search of a bargain, alleviating some of the downwards pressures on leading markets.
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