Asian markets opened as much as four per cent down on Friday, amid increasing fears that the US economy is sliding into recession. The steepest drops were seen in markets with more exposure to high-tec shares, like Korea and Taiwan which fell four per cent and three per cent respectively.
Factory activity in America’s mid-Atlantic region is at its lowest level since March 2009, having a knock-on effect on the global market.
In Europe, the lack of confidence in the market continues. Thursday saw European stocks experience their heaviest losses in two and a half years, with Milan and Frankfurt losing close to six per cent and lenders facing short-term funding problems.