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.
Adding to this the US Bureau of Economic Analysis released information indicating the economy is shrinking.
The Bureau's data suggests the US' real GDP decreased 0.5% in the third quarter 2008.
The FTSE 100 is also down this morning losing nearly 1% by 9:50 am.
Leading the falls is BT which has lost 5.65% so far this morning despite successfully completing an advertising trial with Phorm.
Shares in housebuilder, Taylor Wimpey, bounced almost 8 percent, having fallen 93 percent in the last 12 months, after the company said on Tuesday it expects to reach a deal with its lenders over a deferral agreement on interest cover covenants before the end of 2008.
The Royal Institute of Chartered Surveyors has predicted house prices are likely to fall a further 10% in the coming year although market reaction has been muted this morning, possibly as the news is not unexpected.IFAonline
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