European shares have taken a hammering following a market plunge in Asia. A slide of 8 point 5 percent is thought to be on the back of fears that Britain and other European countries are in for a prolonged recession. The FTSE first 300 index was down to 798 points falling close to its lowest level for five years.
Global stocks tumbled to a new five year low as investors sort out the relative safety of government bonds. The tailspin mirrors Asia’s performance – tumbling share prices as fears grew that a global recession would hit corporate figures.
It’s 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 down nearly 10%.