Europe crashes in Asia’s wake

Still no signs the bottom has been reached in the global markets slump, with Europe following Asia down on opening this morning.

London lost over five percent on opening, with banks and insurers leading the way, and it was the same story in Paris and Frankfurt. In Germany an awful first five minutes was partially recouped by an 81 percent leap in Volkswagen shares, which account for a large share of the market.

The bear market’s claws are sinking ever deeper into investors, and in Belgium the government has again had to step in to protect a besieged bank, KBC, which is particularly strong in Flanders and eastern Europe.

Brussels is injecting three point five billion euros in the only one of the country’s big banks yet to need help, although KBC is saying it has no liquidity problems, and is solvent.

The bad start to the week was triggered by chaotic trading in Asia, and with fears of a deep global recession on the rise the oil price also tumbled to 64 dollars a barrel.

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