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/6948916.stm

The article has changed 37 times. There is an RSS feed of changes available.

Version 8 Version 9
Global markets continue to fall Global markets continue to fall
(10 minutes later)
London's FTSE 100 fell below the 6,000 level on Thursday as uncertainty over the impact of losses in the US sub-prime lending market persisted.London's FTSE 100 fell below the 6,000 level on Thursday as uncertainty over the impact of losses in the US sub-prime lending market persisted.
The index of leading UK shares lost 2.2% to 5978.2 points in early trading on the back of heavy falls in Asia and further declines on Wall Street.The index of leading UK shares lost 2.2% to 5978.2 points in early trading on the back of heavy falls in Asia and further declines on Wall Street.
Concern about the state of world credit markets saw the US Dow Jones index close below 13,000 on Wednesday.Concern about the state of world credit markets saw the US Dow Jones index close below 13,000 on Wednesday.
Japan's Nikkei index lost 2% with shares down 3.7% in Hong Kong.Japan's Nikkei index lost 2% with shares down 3.7% in Hong Kong.
The FTSE has not fallen below 6,000 during a trading session since March this year. It last closed below 6,000 in October 2006.
In the US, the Dow ended 1.3% lower at 12,861.5 points, the first time it has closed below 13,000 since 24 April.
Unknown scale
The recent financial market volatility has been triggered by the US sub-prime mortgage sector, which offers higher-risk loans to people with a poor credit history.
As US interest rates have risen and the housing bubble has burst, a growing number of sub-prime borrowers have defaulted on their loans prompting extensive financial difficulties for a number of investment funds with heavy exposure to the sector - and triggering fears of a wider financial crisis.
While some estimates say $300bn in loans could be at risk, one of the biggest worries for investors is not knowing the eventual scale of the problem.
Central banks have been trying to restore confidence and avoid a credit squeeze, with the Bank of Japan announcing on Thursday that it would inject a further 400bn yen ($3.4bn) into its banking system.
However, such moves, along with comments by US Treasury Secretary Henry Paulson that the economy was strong enough to withstand the turmoil, have done little to appease investors.
In Japan, the Nikkei index closed down 2% at 16,148.49 and elsewhere in Asia, Singapore lost almost 3.7% and Australia's benchmark S&P/ASX 200 lost 1.7% - having at one point suffered its biggest one-day percentage drop in more than seven years.
And when markets opened in Mumbai, India's Sensex index lost 4.34% of its value within minutes.
"The downtrend is still there," said DBS Vickers Securities retail market strategist Yeo Kee Yan.
Credit problems
The problems in the US housing market came to the fore again on Wednesday when Merrill Lynch told its clients to sell any shares they own in the country's largest mortgage lender, Countrywide Financial.
It warned that Countrywide could face bankruptcy if the availability of credit in the market gets any worse and there were market rumours that the lender had failed to raise some money it needed.
Worries about a slowdown in US consumption were not helped by results from the department store Macy's, which blamed the "difficult" climate for a 77% fall in its quarterly profits.
The US Federal Reserve made another $7bn (£3.5bn) of reserves available to the banking system on Wednesday. The Fed has injected $71bn into the system since 9 August.