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World markets hit by heavy losses

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World markets hit by heavy losses

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Its biggest daily decline in over four years. That is what Britain’s FTSE 100 index has suffered, tumbling four percent on a day that has seen shares slide around the globe. The ongoing slump comes despite hopes yesterday that world stock markets may finally be steadying.

Elsewhere Paris, Frankfurt and Milan all closed down as the US mortgage crisis continues to take a heavy toll.

In Brussels, a European Commission spokeswoman said it would probe how the credit rating industry works. The move comes amid claims the sector failed to warn of the loans crisis soon enough.

“There are a number of issues we want to look at….particularly in regard to concerns we have about their apparent slowness in responding to material market evidence of deterioration since mid 2006,” the spokeswoman said.

Shares on Wall Street reflected the slump despite a further injection of 17 billion dollars into the US banking system by the Federal Reserve.