Fears Stalking The World Economy Hit UK Shares
August 5th, 2011 by admin
A massive £35billion was wiped off the value of the biggest companies in Britain on 3rd August, 2011 as the global economy sunk deeper into crisis.
The American debt storm blew back across the Atlantic to Europe and threatened to engulf Italy and Spain.
From Dailymail.co.uk:
Panicked investors were also rattled by signs of a severe slowdown in the United States, the world’s biggest economy, as it edged closer to a double-dip recession.
In New York, the Dow Jones index of American stocks recovered only slightly after falling for eight straight days.
The loss of confidence on financial markets threatens to destroy momentum in the world economy and send unemployment soaring. A renewed global slump would be devastating for Britain and could tip the economy back into recession.
The FTSE 100 index tumbled 133.88 points to 5584.51– slashing the value of Britain’s blue chip companies by £35billion. It is the worst fall for nine months.
Louise Cooper, an analyst at broker BGC Partners in London, said: ‘Everybody is phenomenally nervous. There is a lot of fear out there.’
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Tags: American stocks, Dow Jones index, financial markets. FTSE 100, global economy, recession
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