Markets Crash Around The World

Today has been another crazy day on the markets. On Wall Street the Dow Jones closed 363.35 points or 3.5% at 9,962. Although a massive shock, that was a remarkable recovery having seen the index be on target for a jaw-dropping record of 800 points, beating last weeks 777 point drop.

The broader S&P 500 also fell by 3.8%.

Gloom shifted from American banks to Europe with the disjointed and messy response from the continent's governments. The U.S. Government in the shape of the Federal Reserve. would significantly expand the amount of money it made available to major banks. The Fed will now lend up to $900 billion in credit. The sheer size of the new figure, they hope will reassure the markets.

London, did not recover from its own massive fall off a cliff. The Flagship FTSE 100 fell by 391 points or 7.85%. This represents the largest ever points drop and the third largest in percentage terms since its launch in 1987.

Wall Street Stil Not Sold on Bailout

Wall Street appears not to believe the $700bn rescue package is going to save the U.S. from recession, even if it does alleviate the credit crunch if the House of Representatives vote for it. The Senate passed it yesterday.

The Dow Jones Industrial Index closed 3.2% or 348 points to close at 10,482. The broader S&P 500 dropped even more with a 46.78 drop or 4% to 1,114. Traditional cyclical sectors, manufacturing, chemical production and mining industries fared worst. These typically are hit hardest by recessions.

The FTSE 100 fell 1.8%

In other news, the European Central Bank left interest rates at 4.25%.