Thursday, October 16, 2008

World recession takes the world by storm

By Mandisi Tyulu
16 October 2008


Share prices in Asia have followed the sharp downward trend set by US and European markets, amid growing fears of a global recession.

Japan's Nikkei index fell by about 10 percent in early trading this morning.

Shares in Australia and South Korea dropped by at least five percent and those in Taiwan by more than three percent.

New York's Dow Jones index saw its worst one-day fall yesterday since October 1987, closing almost eight percent down.

There were also big falls in London and other European markets on Wednesday.

Many investors are now convinced that the US economy, if not already in a recession, is moving towards one.

On the Johannesburg Stock Exchange stocks plummeted nearly seven-percent yesterday following severe drops in overseas markets.

Traders say this was triggered by renewed fears of a global economic slowdown even after massive bank bailouts.

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