There was no end in sight to the big share sell-off on Friday. Investors worldwide remain full of fear that the credit crisis will push the global economy into recession.
They have been flogging stocks because they are worried that if they don’t off-load them now, they will be worth less tomorrow or the next day.
The FTSEurofirst 300 index of top European shares had its worst week on record with a drop of 22 per cent, closing at its lowest since July 2, 2003.
In London, financial analyst Howard Wheeldon said nobody knows when things might turn around: “We don’t know where it’s going at the moment. That’s what happens when markets get to this point in a down cycle. Where the bottom is I don’t know, but I don’t think anybody can safely predict.”
In Europe it was a day of extremely volatile trading; investors dumped financial stocks particularly.
Of the biggest European bourses, London fell 8.8 per cent, Frankfurt 7 per cent and Paris 7.73 per cent.
Oil prices also went into free fall as investors fear a drop in demand for energy in a recession.