Markets slide over credit worries

At the end of a bad week on Wall Street there are growing fears that continuing falls will have a knock-on effect on the world economy. The slide in American markets, which was reflected in Europe, was fuelled by fears over access to credit. Ahead of the closure US President George Bush tried to rally confidence, focusing on growth:

“It’s an economy that is large, flexible and resilient. One of the interesting aspects of this economic growth is that we have benefited from increased exports.”

Rising interest rates are hitting corporate profits and dragging down consumer spending. They are also putting a squeeze on lending and investors are feeling the effects.

Most analysts agree that world markets will remain vulnerable to further instability in the coming weeks.

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