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Recession fears pull down Europe shares

Recession fears pull down Europe shares
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The world’s stocks markets continue to be buffeted by economic uncertainty. Investors remain focused on the potential effects of a recession and they are selling shares with a vengeance.

European stocks fell five per cent on Thursday after a day of very volatile trading. In Frankfurt, Dirk Mueller, a trader with MWB Fairtrade said things could go on like this for some time: “It is absolutely strange what is happening here, such strong movements in the market in such a short period of time. And I’m sure we will have these movements for another few months, because the risks are very high, no-one can see what the troubles are coming up.”

Recession fears pushed European banks’ shares down sharply. Fortis plunged more than 26 percent. HSBC shed four percent, Santander ended down 6.5 percent and BNP Paribas lost seven percent.

Across Europe, Britain’s FTSE 100 lost 5.4 percent, Germany’s DAX shed 4.9 percent and France’s CAC-40 ended 5.9 percent lower. Oil companies lost value as the price of crude oil tumbled 7.5 percent to below $70 a barrel. Royal Dutch Shell fell 7.2 percent and Total ended down more than 9 percent.