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| Version 3 | Version 4 |
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| World markets see slide continue | World markets see slide continue |
| (about 1 hour later) | |
| Asian and European stocks have fallen on Monday as the global share sell-off entered its second week. | Asian and European stocks have fallen on Monday as the global share sell-off entered its second week. |
| Japan's Nikkei index closed 3.4% lower - its biggest one-day fall in nine months - while Shanghai's composite index was 3.5% down. | Japan's Nikkei index closed 3.4% lower - its biggest one-day fall in nine months - while Shanghai's composite index was 3.5% down. |
| In London, the FTSE 100 was down 86 points, or 1.5%, at 6,031.3 by 0825 GMT, having earlier dipped below 6,000. | In London, the FTSE 100 was down 86 points, or 1.5%, at 6,031.3 by 0825 GMT, having earlier dipped below 6,000. |
| Last week, a slump in Chinese stocks and fears of a slowdown saw the biggest share sell-off in more than four years. | Last week, a slump in Chinese stocks and fears of a slowdown saw the biggest share sell-off in more than four years. |
| French and German markets also slipped in early trading - with the Cac and Dax indexes losing close to 2% each. | French and German markets also slipped in early trading - with the Cac and Dax indexes losing close to 2% each. |
| In Taiwan shares closed down 3.7% while the main Indian market was 3.6% lower in mid-afternoon trading. | In Taiwan shares closed down 3.7% while the main Indian market was 3.6% lower in mid-afternoon trading. |
| Yen impact | Yen impact |
| The Nikkei tumbled 575.68 points to 16,642.25 on Monday, its lowest level since December and the largest single day plunge since June 2006. | The Nikkei tumbled 575.68 points to 16,642.25 on Monday, its lowest level since December and the largest single day plunge since June 2006. |
| The fall was largely a result of the continued rise of the yen - which hit its highest rate against the dollar in three months on Monday. | The fall was largely a result of the continued rise of the yen - which hit its highest rate against the dollar in three months on Monday. |
| A strong currency cuts profits of Japanese firms when overseas earnings are brought home - resulting in investors selling shares in exporters such as Toyota Motor and Canon. | A strong currency cuts profits of Japanese firms when overseas earnings are brought home - resulting in investors selling shares in exporters such as Toyota Motor and Canon. |
| By close of trading on Friday, indexes had tumbled across the US, Europe and Asia. The Dow Jones fell 4.2% during the week and the FTSE 100 lost £80bn, or 5%, in value. | By close of trading on Friday, indexes had tumbled across the US, Europe and Asia. The Dow Jones fell 4.2% during the week and the FTSE 100 lost £80bn, or 5%, in value. |
| Investors had blamed factors as varied as a new tax in China and the US mortgage market for the decision to dump stocks. | Investors had blamed factors as varied as a new tax in China and the US mortgage market for the decision to dump stocks. |
| Our short-term scenario is that the markets will continue to show weakness James Chua Phillip Capital Management Graph: the FTSE 100 href="/1/hi/business/6403483.stm">Q&A: Will markets recover? | |
| The size of last week's sell-off may have caught investors by surprise, but observers had been warning that a market correction was on the cards. | The size of last week's sell-off may have caught investors by surprise, but observers had been warning that a market correction was on the cards. |
| Many of the world's top indexes and shares had climbed back to levels not seen since the dotcom bubble was burst in 2000, fanning fears that they had become overvalued. | Many of the world's top indexes and shares had climbed back to levels not seen since the dotcom bubble was burst in 2000, fanning fears that they had become overvalued. |
| China's Shanghai market - which sparked the sell-off by falling almost 9% on Tuesday, its biggest decline for a decade - has more than doubled in value since the end of 2005. | China's Shanghai market - which sparked the sell-off by falling almost 9% on Tuesday, its biggest decline for a decade - has more than doubled in value since the end of 2005. |
| Volatility probably will continue as riskier assets are sold, analysts said. | Volatility probably will continue as riskier assets are sold, analysts said. |
| "Our short-term scenario is that the markets will continue to show weakness," said James Chua of Phillip Capital Management. | "Our short-term scenario is that the markets will continue to show weakness," said James Chua of Phillip Capital Management. |
| There have been an increasing number of signs that the US economy may have been slowing down more severely than was previously forecast. | There have been an increasing number of signs that the US economy may have been slowing down more severely than was previously forecast. |
| On Wednesday, the government said that the US economy grew at a rate of 2.2% in the last three months of 2006, down from a previous estimate of 3.5% and below analysts' forecasts. | On Wednesday, the government said that the US economy grew at a rate of 2.2% in the last three months of 2006, down from a previous estimate of 3.5% and below analysts' forecasts. |
| Former Federal Reserve chairman Alan Greenspan did little to calm markets when he said last week that there was a possibility that the US economy would go into recession by the end of the year. | Former Federal Reserve chairman Alan Greenspan did little to calm markets when he said last week that there was a possibility that the US economy would go into recession by the end of the year. |