A Flight to Safety on Wall Street
THE TELEGRAPH: A flight to safety on Wall Street caused yields on 3-month US treasury notes to plummet at the steepest pace since modern records began, eclipsing moves at the height of the 1987 stock market crash.

The big freeze?

Investors fled the $2,500bn (£1,260bn) money market that usually serves as a safe-haven in times of turbulence, responding to reports that funds may be exposed to sub-prime mortgage debt and asset-backed commercial paper. "This is a sign of significant fear in the financial system," said one banker.

However, the Dow, after sinking nearly 100 points in early trading, staged a late rally and ended up 42 points at 13,121, as the pile into treasury notes eased later in the day.

Traders were initially unsettled by news that Deutsche Bank had tapped the credit window of the US Federal Reserve after the emergency half-point cut in the discount rate last Friday. Banks are typically reluctant to use the facility, fearing that it could send off a distress signal. US bond yields plunge at record rate (more) By Ambrose Evans-Pritchard and David Litterick

Mark Alexander

Stock Market Woes Unabated in Face of Uncertainty
FINANCIAL TIMES: Shares in London were back in the red by midday on Friday as an earlier rally fizzled out ahead of what was expected to be another rocky session on Wall Street.

Bank stocks, which have been heavily sold off since the turmoil in the credit markets began in June, stage a recovery as investors took the view that lenders had been oversold.

But losses for cyclical stocks like miners, metal groups and oil companies dragged the index of leading shares lower by midday.
The FTSE 100, which closed at its lowest level since September 2006 on Thursday, fell 31.50 points or 0.6 per cent to 5,825.40. The blue-chip index is down nearly 180 points or almost 3 per cent this week. Since its high in June the FTSE 100 has fallen nearly 13 per cent and is now in negative territory for the year. FTSE turns lower as uncertainty remains (more)

Mark Alexander

Panic in Stock Markets as Share Values Plunge
THE DAILY TELEGRAPH: Shares in London tumbled again yesterday, wiping £75bn off the value of the blue chip index in just two days.

Its fall was matched worldwide despite dramatic attempts by central banks to pour money into the credit markets to prevent losses from the US sub-prime mortgage market slump spreading throughout the financial system.

The FTSE 100 had its biggest drop in almost four and a half years, tumbling 232.9 points to 6038.3, to leave it lower than it started the year. The mid-cap index slid 322.6 to 10889.

Tom Hougaard, chief market strategist at City Index, said: "This is absolutely unprecedented. In the last 15 minutes of trading we dropped 50 points. That's serious 'Get me out, I don't want to be in this any more, I'm scared'." FTSE 100 loses £75bn in two days (more) By Josephine Moulds and Richard Blackden

TIMESONLINE:
Bernanke under pressure to cut rates as markets plunge By Suzy Jagger in New York

FT:
Fresh turmoil in equity markets

DAILY MAIL:
£63bn wiped off UK shares as fears of a recession grow By Sam Fleming

Mark Alexander

Tumbling Stock Markets
NZZ: Die amerikanische Immobilienkrise bringt die Finanzmärkte ins Trudeln. Panikartige Verkäufe an der Wall Street haben am Donnerstag die amerikanischen Aktienmärkte einbrechen lassen. Der Ausverkauf in New York brachte am Freitag auch die Börsen in Asien und Europa arg ins Rutschen.

tsf. Der Ausverkauf an den Börsen geht weiter. Die schweren Kursverluste an der New Yorker Wall Street rissen am Freitag die Aktienkurse in Asien und Europa erneut tief ins Minus. In Japan brach der Nikkei-Index für 225 führende Werte bis Handelsschluss um 2,37% auf 16764,09 Punkte ein. Der breit gefasste Topix gab sogar um 2,96% auf 1633,93 Zähler nach. Die Börsen rutschen weiter ab: Schwere Verluste nach panikartigen Verkäufen in den USA(mehr)

NZZ:
Hauptindizes

NZZ:
Panikartige Verkäufe an der Wall Street

LE FIGARO:
Le spectre d’un krach hante les bourses mondiales

FT:
European markets extend sell-off

TIMESONLINE:
Global share rout sends world markets plunging: ECB pumps extra €61 billion into markets

THE TELEGRAPH:
Global stock markets tumble as sub-prime contagion spreads

THE TELEGRAPH:
Market turmoil: views from the floor

THE TELEGRAPH:
Market volatility hits highest since 2003

THE TELEGRAPH:
Frantic Wall Street scenes as stocks fall due to worsening global credit crunch

TELEGRAPH COMMENT:
ECB’s confidence trick won’t restore faith in market

BBC:
World shares fall on credit fears

WATCH BBC VIDEO:
Asian markets take battering

Mark Alexander