When I heard the news from Asia* on this morning's World Business Report on BBC1 at 5:30 this morning I was wondering and fearing just how the European stock markets would respond. Well currently all are at over 8% down on yesterday's close, with the FTSE 100 dipping below 4,000 for the first time in over 5 years. Although it did rally slightly after a sharp drop to a low of 3,955 on opening it has trended downwards again since about 8:30.
It appears that we are heading for recession, no matter what the Governemnts of the world seem to attempt to stem the tide. At some point the share markets should bottom out once the forced selling (to cover losses already accrued) comes to an end. Or at least that is what the markets are hoping for.
Nick Clegg, leader of the Liberal Democrats, has called for a global solution for this global crisis on this morning's Today programme. Backing up his call yesterday for all parties to support the Government's rescue plan.
*Japan taking its biggest one day hit since the 1987 crash. Australia and Hong Kong down over 8% Indonesian trading suspended still.