Worldwide Stocks Show Signs of Decline

Stock markets around the world started to decline towards the close of play today, after more negative news from the US economy.

The news comes after comments made by mortgage lender Countrywide, predicting a recession as the end outcome of the housing market problems currently plaguing the US economy.

The downfall was further added to by the news of yet another Federal Reserve cash injection, to the tune of $17 billion, to prevent mortgage lenders from falling into liquidity problems.

Markets in the US lead the downward trading, with the Dow Jones eventually settling down 0.25 points after positive early trading. Sister exchange the NASDAQ lost more considerably, down 11.10 points to 2541.7, whilst the S&P 500 was down by 1.57 points to 1462.5.

In Europe, trade was still largely positive, remaining marginally in the green after declining momentum from the US.

The FTSE 100 in London managed to hang on till closing bell, finishing up just 0.9 points at 6196.9.

In Paris, the CAC 40 managed to hold on to its earlier gains closing up 5.16 points on the day at 5523.3, whilst the German DAX 30 was up by 11.48 points, closing as it did at 7512.0.

Whilst European markets did manage to post positive day results, most experienced poor trade towards the end of the day as the announcements from the US materialised.

Additionally analysts have predicted that the downward trend could continue into tomorrow, as markets come to terms with the grave comments from one of the US’ major lending institutions.

The Federal Reserve today invested more money into the US system, as well as loaning privately to a consortium of banks from the US and Europe - yet another move that will fail to inspire market confidence in the dying hours of the week

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