Global markets in freefall

By late afternoon, the FTSE 100 was down by over 2%, while the Dax lost 1.5% and the Cac dropped 1.9%. Inflation, high oil prices and continuing problems in the banking sector have led to a global sell-off of shares. European markets suffered, while in New York the Dow Jones lost almost 100 points on opening before making a slight recovery. Bank and airline stock were particularly badly hit as sub-prime losses continued to affect the financial sector, while fears of a recession and high fuel costs hurt airlines. Stock markets have been in decline since late May and, despite minor recove...