After Asia stocks tumble, Europe’s markets have opened down around 3%. Frankfurt plunged 3.46% while Paris fell over 4%. London’s FTSE opened than 180 points down in early trading. For a third day, Asian share prices fell as investors feared a global recession would hit corporate figures.
It is obvious now that the financial crisis has spread far beyond the banking sector, with electronics giant Sony cutting its profit forecast by half anticipating weakening consumer demand. The knock on effect – Japan’s Nikkei closed at a five and a half year low, down nearly 10%.
With the price of oil falling to a 16 month low due to cuts in demand , fears that producers will cut production forcing a hike at the pumps seems more than likely.