Shares slide amid recession fears

Once again, investors are worried about a global recession

European share indexes have fallen further, as fears of a global recession swept through the major markets.

The FTSE-100 index was down 2.5% or 99.7 points at 3941.2 by early afternoon, with France's Cac 40 down 3.3% and Germany's Dax down 3.8%.

UK retail sales grew at their slowest rate in two-and-a-half years in September, a sign of tough conditions.

Sterling also remained under pressure - close to a five-year dollar low - as traders anticipated more rate cuts.

FTSE 100 INDEX: 23 October 2008

*All Times GMT

Investors are concerned about the global economy and how long the financial crisis will endure. Key recent market developments:

• Sterling stayed near the five-year low of $1.6148 reached on Wednesday, trading at about $1.6299
• South Korea's Kospi index fell 7.4%, its lowest close since July 2005. The Korean won lost 5% of its value against the dollar
• Hong Kong's Hang Seng index was down 4.7%, at its lowest ebb since April 2005

• At one point, the Nikkei was trading at 8,016.61, its lowest level for more than five years. It recovered to close down 213 points or 2.5% at 8,460 points

• The yen strengthened against the dollar and the euro overnight. The dollar hit a seven-month low of 96.85 yen, while the euro hit a six-year low of 123.40 yen

• Indian shares opened down 4.8% at their lowest since June 2006. The rupee has so far shed nearly 21% against the dollar in 2008

• In Australia, the benchmark index closed down 4.4%
• The Dow Jones index closed down 5.7% on Wednesday.

DAX INDEX: 23 October 2008

*All Times GMT

Export fears

The fall in Japanese stocks overnight was triggered in part by weak export data.

The impact of the global slowdown has had a clear impact on Japan's exports Tatsushi Shikano, Mitsubishi UFJ Securities

Japan's trade surplus plunged 94% to 95.1bn yen ($970.1m; £596.7m) in September and exports grew only 1.5% in September from a year earlier, far below forecasts.

Exports of Japanese cars to the US fell, a sign of slowing consumer demand in the world's largest economy.

The continued strength of the yen prompted fears that this will cause further damage to already weak exports.

"The impact of the global slowdown has had a clear impact on Japan's exports and this was even before the financial crisis erupted in September," said Tatsushi Shikano, senior economist at Mitsubishi UFJ Securities.

"Sluggish export volumes will put a drag on Japan's industrial output and its export-reliant economy in the coming months," he added.