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India On Media |
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| Money
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| World shares fall on credit fears |
| Stock indexes have fallen sharply again on Friday, a day after markets in the US and Europe suffered heavy losses amid fears of a global credit crunch
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| UNITED STATES OF AMERICA
, 10-August-2007
11:15:2 AM |
| Billions of dollars were wiped off share values, affecting businesses and individual investors alike.
Shortly after opening, the Dow Jones share index in New York was down 124.8 points, or 0.9%, at 13,145.9 points.
London's FTSE 100 share index closed down 3.7%, the Paris Cac index fell 3.1% and Germany's main Dax fell 1.5%.
Analysts say the crisis could make it harder for banks, firms and consumers to get access to loans and cash.
If this persists, it could lead to a global recession.
Cash injections
Global stock markets have been rattled by worries over financial institutions' exposure to bad credit in the US sub-prime mortgage market.
Sub-prime lenders offer loans to consumers with a poor credit history.
As a result of these problems, banks have suddenly started charging significantly more for the money they lend to each other, signalling that they are looking to limit their risks.
For their part, central banks around the world have moved to prop up markets by lending money to banks who might be in trouble.
The European Central Bank injected cash into the money market for a second day, as did other central banks worldwide.
The ECB said its move was to "assure orderly conditions in the euro money markets".
The bank injected 61.05 bn euros (£41.65bn; $84.2bn) into the eurozone money markets on Friday.
Japan's central bank had earlier pumped one trillion yen ($8.5bn; £4.2bn) into the financial system to boost liquidity.
Asian jitters
The jitters come a day after the FTSE closed down nearly 2%, and following a fall of close to 3% on the Dow Jones index in New York.
At close of trade in Japan, the Nikkei share index was down 2.4%, at 16,764.1.
In Hong Kong, the Hang Seng index ended the day down 2.88% at 21,799.96, after trade was suspended early because of a tropical cyclone warning
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