Double-dip fears resurge
FEARS of a global slump back into recession heightened yesterday after a slew of negative data showed manufacturing output slowed across the world and pending home sales in the US crashed by a third.
Tokyo’s Nikkei stock index tumbled to its lowest level since 2005, while the FTSE 100 plunged to its lowest level in 10 months dropping 2.3 per cent, to 4,805.75. This is its lowest close since 3 September and continues the dismal second quarter trend where the blue-chip index notched up a 13.4 per cent decline.
In the US, the Dow Jones Industrial Average closed 0.4 per cent lower at 9,732.53. The dollar dropped to a seven-month low against the yen and slid further against the euro hitting $1.25.
“Double-dip is back in the lexicon,” said David Bloom, currency chief at HSBC.