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| Worldwide share jitters continue | Worldwide share jitters continue |
| (about 2 hours later) | |
| Global stocks were down on Friday, ending two straight days of solid rises as concerns returned about the state of the worldwide financial sector. | |
| While the main Dow Jones index was down 154 points to 12,225 in mid afternoon trading on Wall Street, European shares had earlier finished lower. | |
| London's FSTE closed down 6.8 points to 5,869, while Frankfurt's Dax lost 4.3 points and Paris' Cac fell 37 points. | London's FSTE closed down 6.8 points to 5,869, while Frankfurt's Dax lost 4.3 points and Paris' Cac fell 37 points. |
| Analysts said sentiment was hit by reports a hedge fund was in trouble. | Analysts said sentiment was hit by reports a hedge fund was in trouble. |
| Reports said that one of the main US hedge funds was in financial difficulty, but no names have been suggested. | Reports said that one of the main US hedge funds was in financial difficulty, but no names have been suggested. |
| US economic plan | US economic plan |
| Global stocks had risen earlier on Friday as investors welcomed the previous day's announcement of a US government plan to spend $150bn (£76bn) reviving the country's economy. | Global stocks had risen earlier on Friday as investors welcomed the previous day's announcement of a US government plan to spend $150bn (£76bn) reviving the country's economy. |
| We expect sharp gains and losses in the next few days and weeks Heinz-Gerd Sonnenschein, a strategist at Postbank | We expect sharp gains and losses in the next few days and weeks Heinz-Gerd Sonnenschein, a strategist at Postbank |
| Strong earnings from Microsoft and building equipment firm Caterpillar had also helped to lift the mood, with Japan's main Nikkei index closing up 4%. | Strong earnings from Microsoft and building equipment firm Caterpillar had also helped to lift the mood, with Japan's main Nikkei index closing up 4%. |
| On Monday, stock markets from Japan to the UK were heavily sold on growing fears that the US would fall into a recession and drag down other key economies too. | On Monday, stock markets from Japan to the UK were heavily sold on growing fears that the US would fall into a recession and drag down other key economies too. |
| In many markets, the falls were the worst since the 11 September 2001 attacks on the US. | In many markets, the falls were the worst since the 11 September 2001 attacks on the US. |
| The resulting turmoil prompted the Fed, the US central bank, to cut US rates to 3.5% from 4.25%. | The resulting turmoil prompted the Fed, the US central bank, to cut US rates to 3.5% from 4.25%. |
| Analysts now expect more volatility in the short term. | Analysts now expect more volatility in the short term. |
| "We expect sharp gains and losses in the next few days and weeks," said Heinz-Gerd Sonnenschein, a strategist at Postbank in Germany. | "We expect sharp gains and losses in the next few days and weeks," said Heinz-Gerd Sonnenschein, a strategist at Postbank in Germany. |
| "The US has done many things to stabilise the market, but all the bad news is not yet out there." | "The US has done many things to stabilise the market, but all the bad news is not yet out there." |