Shares slump on recession fears

London saw its biggest one day fall since August

European and US shares have fallen sharply as poor US retail sales figures and Citigroup's first quarterly loss added to fears of a US recession.
In London the FTSE 100 index of leading shares slumped by more than 3% - its biggest one-day fall since the height of the credit crunch in August.
Meanwhile France's Cac 40 index lost 2.8% while Germany's Dax slid 2.1%.
Sales in US shops fell by 0.4% in December from a year earlier, as consumers tightened their belts.
And Citigroup, the giant US banking firm, reported a $9.83bn (£5bn) net loss for the last three months of 2007, taking its total writedowns as a result of exposure to sub-prime loans to $18bn.
"The losses at Citigroup - whilst fully expected - still seem to be unsettling traders across the Atlantic, whilst at the same time the lacklustre US retail sales figures are confirming that the economy is slowing," said CMC Markets trader Jimmy Yates.
Gloomy
The FTSE 100 ended 190.1 points lower at 6,025.6 - wiping more than $45bn off the value of London's leading companies.
It has lost 7% since the beginning of the year as the US economic situation continues to unravel. Meanwhile the Paris index ended 151.8 points down at 5,251.7, while Frankfurt's Dax closed 165 points lower at 7,566.4. And on Wall Street, the gloomy data hit key markets with the Dow Jones falling 1.6%, or 208 points, at 12,570 while the tech-heavy Nasdaq shed 2,426.4.