World markets fell again today in a crisis of confidence as anxieties about the financial system still ran high after the US government's bail-out of insurer American International Group Inc. (AIG)
The Dow fell 449.36, or 4.06 per cent, to 10,609.66, finishing not far off its lows of the session. After a nosedive on Monday, the index is down more than 7 per cent on the week, and has fallen more than 25 per cent since reaching a record close of 14,164.53 on Oct. 9 last year.
Broader stock indicators also fell sharply. The Standard & Poor's 500 index dropped 57.21, or 4.71 percent, to 1,156.39, while the Nasdaq composite index fell 109.05, or 4.94 percent, to 2,098.85.
Britain's benchmark share index lost 2.25 per cent to hit its lowest close since mid 2005, as investors dumped financial stocks fearing more chaos from a credit crisis that has roiled Wall Street banks. The FTSE 100 closed down 113.2 points at 4,912.4 having touched a low of 4,903.3 and a high of 5,124.4 in volatile trade.
European shares tumbled for a third straight day as investors dumped financials, worried that a credit crisis could claim more victims after the failure of Lehman Brothers and the bailout of insurer AIG.
The FTSEurofirst 300 index of top European shares fell 2 percent to 1,070.10 points, the lowest closing level since May 2005. The benchmark is down more than 8 per cent this week and on is track for its worst week in more than six years.
In Frankfurt, the DAX index ended at 5,860.98 points, down 104.19 or 1.75 per cent.
The CAC-40 index closed at 4,000.11 points, down 87.29 or 2.14 per cent. The Swiss market index closed at 6,654.33 points, down 78.6 or 1.17 per cent.
Italy's All Share Mibtel index closed at 20,006 points, down 455 or 2.22 per cent.
The Nikkei average rose 1.21 per cent from a three-year low hit the previous day, after the Federal Reserve's bailout of American International Group worked to calm some of the turmoil ravaging Wall Street. The Nikkei average added 140.07 points to close at 11,749.79.
Stocks fell 3.63 per cent in Hong Kong to close at a fresh 23-month low on worries over more financial institutions could fall into trouble despite the U.S. government agreed to rescue insurer AIG.
The benchmark Hang Seng Index ended 663.42 points lower at 17,637.19, dragged down by Chinese banks and insurance stocks, including a 7.8 per cent drop in Ping An.
In Sydney, shares fell 0.6 per cent as worries about further implosions in the US banking system overwhelmed relief on the US government's rescue of troubled insurer American International Group. The S&P/ASX 200 index ended down 28.6 points at 4,722.2, extending losses this week to 3.7 per cent.
South Africa's resource-heavy bourse closed lower as fallout from the global financial crisis deepened, while the rand gave up earlier gains versus the dollar, viewed as a safer haven. The All-share index closed at 24,323.19 points, down 655.67 or 2.62 per cent.
The All Gold index closed at 1,753.19 points, up 158.39 or 9.93 percent, while the Industrial index closed at 18,205.2 points, down 599.05 or 3.19 per cent.