Wall Street joined the global equity market sell-off this afternoon while the FTSE 100 ended the day down 1.5% as fears over a weak dollar, credit market turmoil and impending recession continue to rattle nerves.
Markets in Asia, Europe and the US have all been sold off over the last 24 hours. The dollar is also coming under significant pressure, not helped by more bad news from the US economy today, this time on high street spending. Meanwhile oil and gold have shot up to record highs on the back of the weakening US currency.
The dollar fell below 100 yen for the first time in 12 years today and hit a new record low against the euro amid fears in currency markets that the US financial system is vulnerable to the recession spreading from the crisis-hit housing sector.
With troubled hedge fund Carlyle Capital Corp (CCC) lurching towards collapse, stock markets fell sharply as investors feared that the financial turbulance was approaching a new level.