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8 Oct, 2008 04:05

Global share meltdown continues: RTS and Micex slump again before new halt

Russia’s RTS and Micex opened sharply lower, before being halted, on Wednesday, in the face of a withering global share sell off which is wiping Billions from the value of markets worldwide.

In the U.S. on Tuesday night, Moscow time, the Dow closed down a further 5%.  The selling flowed through to Asian trade on Wednesday where the Nikkei closed 9.4% lower, with Sydney, Seoul, and Hong Kong posting 5% losses and Shanghai losing more than 4%.

Within moments of opening the Micex was down 14% with the RTS down 11%, and all major stocks facing double digit falls. Trading was subsequently halted at 11.00 Moscow time, with the Micex closed until October 10, and the RTS closed until further notice.

Attention is now turning to Europe where the British Government has unveiled a bank support package which will see up to £50 Billion ($88 Billion) made available to major British financial institutions, and will see the British Government gain preference shares in these institutions. It will also add £200 Billion in short term liquidity to the banking system in a further attempt unlock seized credit markets.

The announcement comes after the share prices of major British financial institutions were hammered on Tuesday.  Despite the announcement the share sell off is continuing in Wednesday trade with the FTSE 100 in London, the Dax in Frankfurt, and the CaC in Paris all down more than 4% in early trade with banking stocks again being hit severely.