After yesterday's 5% fall on Wall Street, the Dow Jones Industrial Average is down once more in the first half hour of trading today.
With US weekly jobless claims rising to a 16-year high, fears that the American car industry may not receive a government bailout after all and more pressure on Citigroup, the Dow is now down nearly 160 points. The FTSE 100 has, not surprisingly, moved further into the red, down 131.27 points to 3874.41.
In the event that US carmakers such as General Motors do not receive aid, there is a good chance some of them could file for Chapter 11 bankruptcy protection, with all that implies for the US economy and its workforce. GM shares have opened around 10% lower.
As for Citigroup, news that Saudi Prince Alwaleed bin Talal intended to edge up his stake in the struggling bank provided only a brief respite for its shares, which are now down 11.5%, adding to yesterday's 22% decline.
The prospect of a prolonged downturn has sent oil below $50 a barrel and also pushed metals prices lower once more. So commodity companies are among the biggest losers in the FTSE 100, with Vedanta Resources 58.25p lower at 379.75p and Rio Tinto down 196p at £20.62.
British Airways has slid 9.1p to 122.1p after Air France-KLM reported a 44% drop in second quarter profits.
Computer games retailer Game Group has lost 5.5p to 132.5p in the wake of news that US rival Gamestop reported lower than expected third quarter revenues and earnings.
