Gloomy markets slump again

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Monday, 30 September, 2002, 09:44 GMT 10:44 UK

BBC Stock markets around the world have slumped heavily in morning trade, compounding the extreme gloom that gripped investors last week. By 0939 GMT, London's FTSE 100 index was down 116 points at 3,791, down 14% since its recent modest peak in mid-August.

France's Cac 40 index was down 4.2% and the Frankfurt Dax index - the world's worst performer so far this year - was 3.7% lower.

The losses, which were widely predicted after last week's widespread market pessimism, make September one of the worst months in recent stock market history.

Since the end of August, most major share indexes have lost at least 10% of their value, and the Dax is down by one-quarter.

Transatlantic troubles

Investor nervousness has been compounded by fresh concerns over the US economy.

Frankfurt is a market for bears these days The week sees an unusually heavy barrage of reports from the sluggish US economy, including crucial labour and manufacturing data, consumer spending, car sales and factory orders.

Monday is also the end of the US third quarter-year, heralding the start of the next wave of corporate earnings reports.

Some gloomy trading statements last week - including struggling tech giant JDS Uniphase, retailer Wal-Mart and cigarette maker Philip Morris - have raised fears that the results may not prove encouraging.

East is best

Only in Asia were the markets more robust on Monday morning.

Tokyo's Nikkei share index, which has only slipped marginally in the past month, eased by 1.54%, with sentiment buoyed by hopes of speedier reform of the banking sector.

Asian shares, traditionally less vulnerable to the swings of Wall Street, have performed far more strongly than the world average in the past few weeks.

-- Anonymous, September 30, 2002


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