Guardian – Stock markets tumbled on Thursday and the pound slumped to a one-year low against the US dollar as investors took fright at a gloomy warning about the world economic outlook from the US central bank.
The US Federal Reserve’s Operation Twist – its latest attempt to stimulate the American economy – failed to calm financial markets. TheFTSE 100 index in London plunged 266 points to 5022, a 5% drop. Other European markets also suffered heavy losses.
