August 18, 2011
Global stock markets have resumed their recent slide, weighed down by fears that the world is sliding into a double-dip recession.
Concerned that the eurozone debt crisis could be spreading to the US banking sector, regulators in New York have stepped up their scrutiny of the US arms of Europe’s largest banks. Further pressure came from worse-than-expected new jobless claims in the US last week, while inflation was faster than anticipated in July.
The FTSE index in London dropped more than 200 points to 5123 at one stage in the early afternoon, a decline of 3.9%, with all 100 stocks on the index down ‚Äď banking and mining stocks among the biggest fallers, led by Barclays, Lloyds Banking Group and Royal Bank of Scotland.