Update: Dow opens down as FTSE stabilises

After a bright start which saw indices in London, Germany and France all open higher, they all fell significantly in late morning trading, although they recovered towards the end of trading. The Dow Jones was down 0.4% at 10,690.8, following a fall of 3.5% yesterday. The initial slump, which began yesterday morning, was sparked by a Federal Reserve warning about the outlook for the US economy. That also followed gloomy forecasts from the International Monetary Fund and World Bank about the global situation. Reassurances on Friday from the G20 that it was ready to take action to ...