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| World stock drop hits second week | World stock drop hits second week |
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| The global stock market slump has powered into its second week, pushing the UK's main share index below 6,000 for the first time since October. | The global stock market slump has powered into its second week, pushing the UK's main share index below 6,000 for the first time since October. |
| In mid-afternoon trade the FTSE 100 had recovered slightly, but was quoted down 72.7 points, or 1.19%, at 6,043.5. | |
| In New York, the Dow Jones index opened lower, falling 59 points to 12,054.9. | |
| The drop mirrored heavy losses in Europe and Asia, with investors dumping stocks because of concerns they are overvalued and growth will slow. | The drop mirrored heavy losses in Europe and Asia, with investors dumping stocks because of concerns they are overvalued and growth will slow. |
| "It looks like it's becoming a domino, with one market pulling down the other and I don't know where the domino effect will stop," said Jose Vistan of AB Capital Securities. | "It looks like it's becoming a domino, with one market pulling down the other and I don't know where the domino effect will stop," said Jose Vistan of AB Capital Securities. |
| "You throw away technical and fundamentals out of the window," he explained. "Emotions are the ones driving share prices right now." | "You throw away technical and fundamentals out of the window," he explained. "Emotions are the ones driving share prices right now." |
| In the past five sessions, about £111bn has been wiped off the FTSE 100's value. | |
| When there's such a big market move in such a short period of time, there's that element of surprise and confusion Teruhisa IshikawaMizuho Investors Securities Graph: the FTSE 100 Q&A: Will markets recover? | When there's such a big market move in such a short period of time, there's that element of surprise and confusion Teruhisa IshikawaMizuho Investors Securities Graph: the FTSE 100 Q&A: Will markets recover? |
| With investors getting increasingly jittery, the steep falls on the stock exchanges have started to ripple through to the commodities markets, and especially oil. | With investors getting increasingly jittery, the steep falls on the stock exchanges have started to ripple through to the commodities markets, and especially oil. |
| A barrel of US sweet crude was down by $1.12 a barrel to $60.52, while London's main Brent crude contract lost $1.02 to $61.06. | A barrel of US sweet crude was down by $1.12 a barrel to $60.52, while London's main Brent crude contract lost $1.02 to $61.06. |
| More weakness? | More weakness? |
| The current stock slump was triggered last week by the biggest drop on China's market in a decade. | The current stock slump was triggered last week by the biggest drop on China's market in a decade. |
| That fed into fears about the state of the US economy at a time when many investors were questioning whether share prices had risen too far too quickly. | That fed into fears about the state of the US economy at a time when many investors were questioning whether share prices had risen too far too quickly. |
| Many of the world's top indexes and shares had climbed to levels not seen since the dotcom bubble burst in 2000. | Many of the world's top indexes and shares had climbed to levels not seen since the dotcom bubble burst in 2000. |
| On Monday, Japan's Nikkei 225 had its worst day since June - largely a result of the continued rise in the yen - which hit its highest rate against the dollar in three months. | On Monday, Japan's Nikkei 225 had its worst day since June - largely a result of the continued rise in the yen - which hit its highest rate against the dollar in three months. |
| A strong currency makes Japanese goods more expensive abroad and cuts the profits of Japanese firms when overseas earnings are brought home. | A strong currency makes Japanese goods more expensive abroad and cuts the profits of Japanese firms when overseas earnings are brought home. |
| It also means that investors who borrowed yen to take advantage of low interest rates and then put the cash into assets such as equities, would now be looking to close positions and pay off their loans, analysts said. | It also means that investors who borrowed yen to take advantage of low interest rates and then put the cash into assets such as equities, would now be looking to close positions and pay off their loans, analysts said. |
| Volatility | Volatility |
| Leading declines on Monday in Tokyo were exporters such as Toyota Motor and Canon, and the Nikkei closed 3.4%, or 575.68 points, lower at 16,642.25, its lowest level since December and the largest daily plunge since June 2006. | Leading declines on Monday in Tokyo were exporters such as Toyota Motor and Canon, and the Nikkei closed 3.4%, or 575.68 points, lower at 16,642.25, its lowest level since December and the largest daily plunge since June 2006. |
| Shanghai's composite index lost 3.5%, Taiwan shares closed down 3.7%, and the main Indian market had its lowest close in five months. | Shanghai's composite index lost 3.5%, Taiwan shares closed down 3.7%, and the main Indian market had its lowest close in five months. |
| In Europe, France's Cac and Germany's Dax indexes also slipped, both losing more than 1.2% and 1.5% respectively. | |
| Volatility probably will continue as riskier assets are sold, analysts said. | Volatility probably will continue as riskier assets are sold, analysts said. |
| "When there's such a big market move in such a short period of time, there's that element of surprise and confusion," said Teruhisa Ishikawa of Mizuho Investors Securities. | "When there's such a big market move in such a short period of time, there's that element of surprise and confusion," said Teruhisa Ishikawa of Mizuho Investors Securities. |
| Is this the start of a worldwide depression? Or is it a mere blip in the market? Are you worried about your investments? How do you think this will affect the economy in your country? | Is this the start of a worldwide depression? Or is it a mere blip in the market? Are you worried about your investments? How do you think this will affect the economy in your country? |