Global stock markets take further tumble

Although the Nasdaq recovered slightly in afternoon trading thanks to some good news in the technology sector, a higher than expected rise in the US unemployment rate served to reinforced the current downward trend in global stock markets.

Official data from the US Department of Labour shows that in the US unemployment jumped to 4.9 per cent in August, almost half-a-percent more than expected by most economists.

The statistics show American unemployment figures now standing at their highest rate since September 1997, prompting concerns over a further ‘emergency’ cut in US interest rates, aimed at staving off a possible recession.

Following the news, the Dow Jones industrial average index of leading shares lost over 100 points in the first few minutes of trading. However, the Nasdaq index received a boost in the form of firm third quarter results from chip maker Intel.

But by mid-afternoon the FTSE 100 had fallen even further than the previous day’s low to take the index to a new three-year low.

The news, combined with negative growth figures for the Japanese economy, have seen the Asian stock markets take a similar tumble, with share prices plummeting throughout Taiwan, Hong Kong and Japan, as the latter approaches a potential recession, in tandem with the US. (CL)