'Markets lose $2.5 trillion as crisis accelerates'

from the telegraph........

"The FTSE 100 slumped to its worst week since the depths of the financial crisis as fears of a new global recession wiped more than $2.5tn (£1.5tn) from the value of stock markets around the world"

"The blue-chip index of Britain’s leading companies ended another volatile trading day down 146.15 points, or 2.7pc, at 5,246.99 – a 9.8pc tumble on the week. Across the Atlantic, the Dow Jones Industrial Average and the S&P 500 were poised for their steepest weekly declines in three years.

After heavy selling at the open in London, the FTSE and Wall Street rallied briefly after the latest US employment report for July showed the economy created 117,000 jobs, beating the 85,000 forecast by economists.

The turmoil of the previous four days had only intensified investors’ focus on a jobs report that was always likely to be the most important economic release of the week. “In the context of a normal recovery, it’s not a strong number,” said Eric Stein, a fund manager at Eaton Vance in Boston. “But in the context of the fear that’s been permeating the market it’s not a terrible number”..............READ MORE