Blind panic swept through the City today as the Stock Market collapsed, shedding £80billion in its worst ever opening as share prices collapsed following huge losses around the globe.
Traders were in a state of "paralytic fear" when shares crashed through the floor just after the 8am opening.
In seven minutes this morning, the FTSE-100 Index tumbled almost ten per cent or 439 points to reach 3873.00 - its lowest level for more than five years - before clawing back slightly.
Share values dropped at a rate of £250million a second. Bank shares were among the biggest losers as only one company managed to stay in the red.
Emphasis added by me.
Worse:
Across the world, shares were in the red. In Europe, benchmark indexes in France and Germany also plunged almost 10 per cent in early trading. Spain's Ibex stock index was down more than six per cent.
Austria's financial watchdog stopped trading in all securities if they swing more than 10 per cent and introduced a ban on short-selling to try and ease the turmoil.
Earlier in Asia, Japan's Nikkei closed down 9.62 per cent in its worst session since Black Monday in 1987. The Hang Seng in Hong Kong closed down more than seven per cent and China's benchmark index was down 3.57 per cent.
'Selling is unstoppable in New York and Tokyo,' said Yutaka Miura, senior strategist at Shinko Securities Co. Ltd. 'Investors were gripped by fear.'
Yamato Life Insurance Co in Japan became the country's first financial collapse of the crisis, folding with £1.8trillion in debts.
In the Philippines, shares closed down 8.3 per cent. Trading was suspended 'indefinitely' in Indonesia to prevent any more losses and also halted in Vienna.
Meanwhile, in Australia, experts dubbed it 'Black Friday' after its stocks tumbled 8.34 per cent in its biggest ever one-day loss. In New Zealand, shares fell 4.72 per cent.
'There's no bottom to the stock markets now,' added Francis Lun, general manager at Fulbright Securities Ltd. in Hong Kong. 'There's no clue when it will stop.'
Emphasis added by me.
Trading was also halted in Brazil, Romania, and -- our favorite whipping boy these days -- Iceland.
Look at this:
The sell-off on Wall Street last night took place exactly one year to the day after the Dow enjoyed a record high of 14,164.
Since then, frozen credit markets, rocketing levels of mortgage defaults, job losses and outright fear have knocked 39 per cent from its value. On paper, the losses are worth $8.3trillion.
Emphasis added by me.
What else is there to say?
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