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Crude falls 10pc as markets dip

ALL eyes are on the global investment markets today after a day of carnage caused the biggest firesale of stocks in the US since the onset of the financial crisis.

The price of crude oil dropped by 10pc within the week as speculators believe that there will be less need for the commodity as the recession takes hold again.

Central bank interventions in Europe and Japan failed to ease investors fears over another economic crash amid debt crises in the Eurozone and the US.

The Dow Jones was down more than 500 points and the NASDAQ lost 5.08pc, while some Asian markets fell by more than 5pc.

Japan's Nikkei fell to its lowest level since March, when the country was shook by the massive earthquake and tsunami.

Investors anticipate further haemorrhaging of shares in the day ahead and they fear the world is slipping into another financial crisis.

Yesterday's massive plunge was a signal of the withdrawal of optimism, of any hope that the global market would regain ground.

Investors kept selling sovereign bonds, despite the European Central Bank's revelations that it was buying Government debt.

Two-year Treasury yields fell to a record low as investors sought safety in short-term Government bonds.

Nearly 14 billion shares changed hands, the busiest trading day in more than a year. Decliners beat advancers on the New York Stock Exchange by about 19 to 1.