European stocks drifted at the open, after Asian stocks tumbled overnight on fears of a recession.
European stocks drifted at the open, after Asian stocks tumbled overnight on fears of a recession.
The FTSE-100 index was up 23.09 at 4063.98 - after opening lower - with France's Cac 40 up 11.9 at 3310.08 and Germany's Dax down 31.63 at 4539.44.
The FTSE-100 index was down 24.07 at 4016.82, with France's Cac 40 down 22.66 at 3275.52 and Germany's Dax down 31.63 at 4539.44.
Investors will look to UK retail sales data later on for clues as to how the High Street is faring.
Retail sales grew at their slowest rate in two-and-a-half years in September, a sign of tough High Street conditions.
Japan's Nikkei index closed down 2.5%, recovering from earlier lows, amid concern about the fall in exports.
Sterling remained under pressure - close to a five-year dollar low - as traders anticipated more rate cuts.
FTSE 100 INDEX: 23 October 2008*All Times GMT
FTSE 100 INDEX: 23 October 2008*All Times GMT
In other developments:
Key market developments:
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South Korea's Kospi index fell 7.4%, its lowest close since July 2005. The Korean won lost 5% of its value against the dollar
Hong Kong's Hang Seng index was down 4.7%, at its lowest ebb since April 2005
At one point, the Nikkei was trading at 8,016.61, its lowest level for more than five years. It recovered to close down 213 points at 8,460 points
The yen strengthened against the dollar and the euro. The dollar hit a seven-month low of 96.85 yen, while the euro hit a six-year low of 123.40 yen.
Indian shares opened down 4.8% at their lowest since June 2006. The rupee has so far shed nearly 21% against the dollar in 2008
In Australia, the benchmark index closed down 4.4%.
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Sterling
stayed near the five-year low of $1.6148 reached on Wednesday, trading at about $1.6311
At one point, the Nikkei was trading at 8,016.61, its lowest level for more than five years. It recovered to close down 213 points or 2.5% at 8,460 points
The yen strengthened against the dollar and the euro. The dollar hit a seven-month low of 96.85 yen, while the euro hit a six-year low of 123.40 yen
South Korea's Kospi index fell 7.4%, its lowest close since July 2005. The Korean won lost 5% of its value against the dollar
Hong Kong's Hang Seng index was down 4.7%, at its lowest ebb since April 2005
Indian shares opened down 4.8% at their lowest since June 2006. The rupee has so far shed nearly 21% against the dollar in 2008
In Australia, the benchmark index closed down 4.4%
The Dow Jones index closed down 5.7% on Wednesday.
DAX INDEX: 23 October 2008*All Times GMT
Export fears
Export fears
The fall in Japanese stocks was triggered in part by weak export data.
The fall in Japanese stocks was triggered in part by weak export data.
The impact of the global slowdown has had a clear impact on Japan's exports Tatsushi Shikano, Mitsubishi UFJ Securities
The impact of the global slowdown has had a clear impact on Japan's exports Tatsushi Shikano, Mitsubishi UFJ Securities
Its trade surplus plunged 94% to 95.1bn yen ($970.1m; £596.7m) in September and exports grew only 1.5% in September from a year earlier, far below forecasts.
Japan's trade surplus plunged 94% to 95.1bn yen ($970.1m; £596.7m) in September and exports grew only 1.5% in September from a year earlier, far below forecasts.
Exports of Japanese cars to the US fell, a sign of slowing consumer demand in the world's largest economy.
Exports of Japanese cars to the US fell, a sign of slowing consumer demand in the world's largest economy.
The continued strength of the yen prompted fears that this will cause further damage to already weak exports.
The continued strength of the yen prompted fears that this will cause further damage to already weak exports.
"The impact of the global slowdown has had a clear impact on Japan's exports and this was even before the financial crisis erupted in September," Tatsushi Shikano, senior economist, Mitsubishi UFJ Securities.
"The impact of the global slowdown has had a clear impact on Japan's exports and this was even before the financial crisis erupted in September," said Tatsushi Shikano, senior economist at Mitsubishi UFJ Securities.
Wall Street shares tumbled overnight
"Sluggish export volumes will put a drag on Japan's industrial output and its export-reliant economy in the coming months," he added.
"Sluggish export volumes will put a drag on Japan's industrial output and its export-reliant economy in the coming months," he added.
American fears
The fall came in the wake of Wednesday's trading on Wall Street, where the Dow Jones index closed down 5.7%, amid an increasingly gloomy outlook for the global economy.
DOW JONES INDUSTRIAL AVERAGE: 23 October 2008*All Times GMT
Job cuts at Yahoo and drugs firm Merck have increased economic concerns in the US.
The White House is to hold a global summit on the crisis next month.
The meeting will debate the reforms needed to avoid another financial crisis and look at the progress being made. Leaders from the G20 group of nations - the world's leading industrialised countries and major developing nations - will attend.
