FTSE Plunges, And So Does Everything Else

European share markets have all fallen sharply on renewed recession fears, following an earlier sell-off in Asia.

London's FTSE index plunged more than 8% after figures confirmed Britain's economy shrank 0.5% in the last quarter - the first time in 16 years.

The pound fell to $1.52 - the lowest level in five years - on expectations of further UK rate cuts.

There were even steeper falls in other European markets. Paris and Frankfurt indexes slumped by about 9%.

In Moscow, trading was suspended for one hour after the main share index dropped 7.4% in the first two hours of trading.

Across Asia, share prices tumbled for a third day in a row as investors feared a global recession would badly hit company earnings.

Japan's Nikkei closed at a five-and-a-half year low, down 9.6% after the electronics giant Sony halved its full-year profit forecasts.

South Korea's market plunged 10.6% as chip maker Samsung announced a 44% fall in its third-quarter profits.