This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7927409.stm

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Shares slide amid renewed worries Shares slide amid renewed worries
(about 7 hours later)
Global shares have tumbled, dragged lower by continued fears about the banking system and doubts about the ability of General Motors to survive.Global shares have tumbled, dragged lower by continued fears about the banking system and doubts about the ability of General Motors to survive.
US shares lost more than 4%, hitting a new 12-year low of 6594.44 points, while Germany's DAX dropped 5% and the UK's FTSE 100 index fell 3.2%.US shares lost more than 4%, hitting a new 12-year low of 6594.44 points, while Germany's DAX dropped 5% and the UK's FTSE 100 index fell 3.2%.
Markets were shaken by the fact that China's premeir did not expand measures to help the economy, analysts say. Markets were shaken by the fact that China's premier did not expand measures to help the economy, analysts say.
GM shares fell 15% as auditors voiced doubt it could stay afloat.GM shares fell 15% as auditors voiced doubt it could stay afloat.
"The auto industry is effectively being wiped out or nationalised, however you want to think about it," said Rick Campagna, portfolio manager at Provident Investment Council."The auto industry is effectively being wiped out or nationalised, however you want to think about it," said Rick Campagna, portfolio manager at Provident Investment Council.
Banking shares also dropped. Shares in Citigroup fell below $1 at one point, closing down 10% at $1.02.Banking shares also dropped. Shares in Citigroup fell below $1 at one point, closing down 10% at $1.02.
The Dow Jones industrial average closed down 281.40 points or 4.09% at 6,594.44.The Dow Jones industrial average closed down 281.40 points or 4.09% at 6,594.44.
Economic worriesEconomic worries
Investor hopes that China would expand its stimulus package had pushed markets higher on Wednesday. Shares then tumbled when Chinese Premier Wen Jiabao failed to announced any expansion of the package.Investor hopes that China would expand its stimulus package had pushed markets higher on Wednesday. Shares then tumbled when Chinese Premier Wen Jiabao failed to announced any expansion of the package.
He said that the current year would be the most difficult the country has faced this century.He said that the current year would be the most difficult the country has faced this century.
Sacha Tihanyi, analyst at Scotia Capital, said: "Expecting Chinese stimulus to provide a boost to global economic fundamentals and help drive a sustainable rally in equities is somewhat like putting the cart before the horse."Sacha Tihanyi, analyst at Scotia Capital, said: "Expecting Chinese stimulus to provide a boost to global economic fundamentals and help drive a sustainable rally in equities is somewhat like putting the cart before the horse."
"In fact we'd only half jokingly suggest that for Chinese stimulus to work immediate wonders in boosting China's economy, they might be better off giving stimulus funds to the West to subsidize consumption of imported Chinese goods.""In fact we'd only half jokingly suggest that for Chinese stimulus to work immediate wonders in boosting China's economy, they might be better off giving stimulus funds to the West to subsidize consumption of imported Chinese goods."
Forecasts cutForecasts cut
European markets were also knocked after European Central Bank (ECB) President Jean-Claude Trichet cut his forecasts for eurozone growth.European markets were also knocked after European Central Bank (ECB) President Jean-Claude Trichet cut his forecasts for eurozone growth.
The ECB now predicts GDP this year in the 16-nation bloc will shrink by between 2.2% and 3.2%.The ECB now predicts GDP this year in the 16-nation bloc will shrink by between 2.2% and 3.2%.
In December it predicted that growth would be between no change and a fall of 1% in 2009. The ECB also reduced its interest rates - to 1.5% from 2%.In December it predicted that growth would be between no change and a fall of 1% in 2009. The ECB also reduced its interest rates - to 1.5% from 2%.
Meanwhile, the Bank of England said it was to create £75bn of new money in an attempt to revive lending and the battered economy.Meanwhile, the Bank of England said it was to create £75bn of new money in an attempt to revive lending and the battered economy.
The announcement was made as it cut interest rates from 1% to 0.5%.The announcement was made as it cut interest rates from 1% to 0.5%.