Global markets slide on banking fears

Global stock markets moved firmly into reverse on Monday after six weeks of gains on renewed fears for the banking sector after Bank of America (BoA) disclosed bigger-than-expected credit losses.

By James Quinn, Wall Street Correspondent, telegraph.co.uk
Last Updated: 8:30AM BST 21 Apr 2009

Traders nerves were further tested by rumours, later denied, that the US Treasury was subjecting banks to fresh "stress tests". In New York, the benchmark Dow Jones closed down 289.60 points – or 3.6pc – at 7.841.73, while the broader S&P 500 fell 4.3pc – the US indices worst day since March 5.

The Chicago Board Options Exchange Volatility index – known as the "Vix" – which measures the volatility of the S&P500, rose by 15.1pc, its biggest one day gain since January 20 (more)