Financials rack up double-digit declines

European markets posted their biggest percentage fall in more than 20 years plunging through a key psychological floor as fears about the global financial crisis escalated to new heights. The pan-European FTSE Eurofirst 300 dived 7.8 per cent to a four-year low of 1004.90 and punctured the 1,000 point threshold late in the session for the first time since October 2004. Financial and commodity stocks tumbled and only three of the index’s 312 stocks finished positively, leaving harried investors almost nowhere to hide. Germany’s Xetra Dax surrendered 7.1 per cent to 5,387.01, while in France the CAC 40 lost 9 per cent to 3,711.98. Financial stocks registered dizzying double-digit falls as investors rushed for the exits. “The banking system doesn’t work any more. It is just broken. Banks are arriving at a recession with no... [read full story]