Ashley Seager, Andrew Clark and Marianne Barriaux in Paris
Wednesday September 26, 2007
Financial markets on both sides of the Atlantic took fright yesterday at economic data showing weakness in the US and Germany as investors fretted about banks’ balance sheets in the wake of the Northern Rock fiasco.The FTSE 100 share index fell almost 100 points, or 1.5%, although by the close it had recovered to 6,397, down 69 points.
Dealers sold bank shares on worries that the sector could be hit by further problems in credit markets, which caused the Northern Rock crisis. Barclays and the French banks BNP Paribas and Société Générale were among the biggest losers.