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Global stocks see sharp declines Global stocks see sharp declines
(10 minutes later)
European shares have fallen sharply in morning trading, mirroring earlier falls in East Asia as worries about the US economy continue.European shares have fallen sharply in morning trading, mirroring earlier falls in East Asia as worries about the US economy continue.
The UK's FTSE 100 index was down 1.4% to 6,435 just after noon in London, while Germany's Dax had lost 1.4%, and France's Cac had shed 1.3%.The UK's FTSE 100 index was down 1.4% to 6,435 just after noon in London, while Germany's Dax had lost 1.4%, and France's Cac had shed 1.3%.
Earlier, Tokyo's Nikkei index had closed 2.2% lower. Earlier, Tokyo's Nikkei index closed 2.2% lower.
European and East Asian markets were responding to heavy US share falls on Wall Street on Friday.European and East Asian markets were responding to heavy US share falls on Wall Street on Friday.
Caterpillar warningCaterpillar warning
The Dow Jones, the main US share index, fell 367 points on Friday, the 20th anniversary of the Black Monday stock market crash.The Dow Jones, the main US share index, fell 367 points on Friday, the 20th anniversary of the Black Monday stock market crash.
Friday's slump on Wall Street is going to dominate market sentiment as the new trading week gets under way Matt Buckland, a trader with CMC MarketsFriday's slump on Wall Street is going to dominate market sentiment as the new trading week gets under way Matt Buckland, a trader with CMC Markets
The falls were set off by concerns that the full effects of the US housing slowdown have not yet been seen.The falls were set off by concerns that the full effects of the US housing slowdown have not yet been seen.
It started when the building equipment firm Caterpillar cut its profit forecast, blaming the state of the economy.It started when the building equipment firm Caterpillar cut its profit forecast, blaming the state of the economy.
Caterpillar added that the US economy will be "near to, or even in, recession" next year. Caterpillar added that the US economy would be "near to, or even in, recession" next year.
'Sentiment driven''Sentiment driven'
"Friday's slump on Wall Street is going to dominate market sentiment as the new trading week gets under way," said Matt Buckland, a trader in London with CMC Markets."Friday's slump on Wall Street is going to dominate market sentiment as the new trading week gets under way," said Matt Buckland, a trader in London with CMC Markets.
"Obviously there's speculation that we may see a repeat of the losses from Black Monday some 20 years ago, and with little economic data being scheduled for release, it's going to be sentiment rather than the fundamentals that provide the bulk of the direction.""Obviously there's speculation that we may see a repeat of the losses from Black Monday some 20 years ago, and with little economic data being scheduled for release, it's going to be sentiment rather than the fundamentals that provide the bulk of the direction."
On Black Monday in 1987, the Dow Jones fell 23%, which nowadays would mean a drop of more than 3,000 points.On Black Monday in 1987, the Dow Jones fell 23%, which nowadays would mean a drop of more than 3,000 points.
The fall on the FTSE 100 comes after it had recovered from the panic that gripped markets in August in the wake of the global credit squeeze.The fall on the FTSE 100 comes after it had recovered from the panic that gripped markets in August in the wake of the global credit squeeze.