Tuesday, 15 January 2008

Shares Slump on Recession Fears

BBC: European and US shares have fallen sharply as poor US retail sales figures and Citigroup's first quarterly loss added to fears of a US recession.

In London the FTSE 100 index of leading shares slumped by more than 3% - its biggest one-day fall since the height of the credit crunch in August.

Meanwhile France's Cac 40 index lost 2.8% while Germany's Dax slid 2.1%.

Sales in US shops fell by 0.4% in December from a year earlier, as consumers tightened their belts.

And Citigroup, the giant US banking firm, reported a $9.83bn (£5bn) net loss for the last three months of 2007, taking its total writedowns as a result of exposure to sub-prime loans to $18bn.

"The losses at Citigroup - whilst fully expected - still seem to be unsettling traders across the Atlantic, whilst at the same time the lacklustre US retail sales figures are confirming that the economy is slowing," said CMC Markets trader Jimmy Yates. Shares slump on recession fears >>>

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