Japan's stock market finished its worst year in history today after the world's second-largest economy was buffeted by the global financial crisis, a deepening recession and a soaring currency, The Telegraph reports.

In the third instalment of IFAonline's annual review, predictions of economic disaster become reality as the UK economy stumbles and, a year after the credit crunch began, the global financial system teeters on the edge of chaos...

...

The US will continue to be Schroders' market of choice in 2009 as it could be one of the first to emerge from the current economic crisis, according to chief economist Keith Wade. 

Mining stocks lead the way in London this morning as the FTSE 100 begins trading higher after the four-day break, up 89.04 points, or 2.11%, to 4,305.63.

In the second part of IFAonline's review of 2008, rumours of recession and a worldwide credit crunch became fact as financial giants announced rights issues left, right and centre...

Beleaguered bank RBS is poised to abandon the attempted £7bn sale of its insurance operations, which include the Direct Line and Churchill brand names, reports The Guardian .

The FTSE 100 could rebound up to the 5,000 mark by the end of next year, predicts Mike Lenhoff, chief strategist at investment manager Brewin Dolphin.

It's been emotional. While 2008 started out on a semi-high, it is ending on one of the bummest note in history. IFAonline looks back on a year that will be remembered for all the wrong reasons...

The Dow Jones closed 1.18% down yesterday as investors continue to be concerned the auto bailout may not save the car companies and home prices may fall even further.