Bloodbath fear after Asian fall

Investors were facing another bloodbath today after Asian markets tumbled overnight.

Japan’s Nikkei index slid nearly 10% at one stage amid fears that the spreading financial crisis could bring a global recession.

The FTSE 100 Index was due to open more than 200 points lower, despite the British government’s £50bn (€64bn) rescue plan for UK banks.

Asian traders reacted to another grim session in New York after the Dow Jones Industrial Average lost more than 500 points, or 5%.

CMC Markets dealer Matt Buckland said he did not expect the UK banking bail-out to buck the market gloom.

He said: “For the time being, it looks as if the impact is going to be minimal.

“As we’ve seen in the US, government intervention isn’t freeing up credit markets and that is the key point – if it’s difficult for companies and individuals to get hold of credit, it’s going to be difficult to stimulate growth and break out of this recessionary mindset.”