Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Is somthing a-brewing in Britain since Scottish referendum?

Read more

DEBATE

Strikes Over Syria

Read more

ENCORE!

30 years of Americana through Jean-Pierre Laffont's lens

Read more

FOCUS

A little bit of Africa in Paris

Read more

AFRICA NEWS

Frenchman kidnapped in Algeria: 'IS'-linked jihadists claim abduction of 55-year-old tourist

Read more

TALKING EUROPE

EU budget deficits: Time to be more flexible?

Read more

TALKING EUROPE

Sir Graham Watson, President of the Alliance of Liberals and Democrats for Europe

Read more

#TECH 24

Anonymous ‘declare cyber war’ on IS militants

Read more

WEB NEWS

Cambodian garment workers demand minimum wage

Read more

European stocks follow Asian downturn

Latest update : 2008-09-24

European stock markets fell sharply amid growing concern over Washington's massive bailout plan for the US financial system. At Tuesday's close, London's FTSE 100 was down 1,91% while the CAC 40 in Paris shed 1.98%.

European shares ended sharply lower for a second straight day as investors fretted about the fate of a $700 billion financial sector bailout plan that the United States is trying to push through Congress. 

The pan-European FTSEurofirst 300 index ended 1.5 percent lower at a provisional 1,109.93 points, adding to a 2.1 percent loss on Monday after a record surge on Friday when news of the plan emerged and several countries instituted short-selling bans.
 
Banks took most points off the index, with UBS falling 7.9 percent and Royal Bank of Scotland losing 5.9 percent.
 
Miners also fell sharply, tracking metal prices. Anglo American was the heaviest-weighted individual loser on the index, falling 8.2 percent, while Rio Tinto lost 5.1 percent. 

Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson stressed to Congress the dire consequences of failing to move quickly on the plan for the government to buy up hundreds of billions of dollars of tainted mortgage-related securities.
 
"Paulson and Bernanke will do their utmost to get a sense of urgency into Congress, but this is particularly sensitive because of the election season and politicians will take all the room they can have to make populist changes," said Emiel van den Heiligenberg, head of asset allocation at Fortis Investments. 

"We would expect the plan to be accepted, perhaps in a slightly amended form, but stay cautious on markets because of the recession and the impact on earnings. That's something that needs more time to work itself out," he said.

Date created : 2008-09-23

COMMENT(S)