Source: FT.com

Growing evidence that the worldwide bank rescue plans have come too late to avert a deep global recession drove down stock markets in Europe and the US on Wednesday.

The S&P 500 index fell more than 9 per cent, its biggest one-day decline in percentage terms since the stock market crash of 1987.

Investor fears came as bad economic data were released across the world, and emerging economies appeared more vulnerable than thought to the world slowdown.

Ben Bernanke, chairman of the Federal Reserve, warned that even if bank rescue plans succeeded in stabilising financial markets “broader economic recovery will not happen right away”.

He said the US economy had been deteriorating even before the latest intensification of the financial crisis with “marked slowdowns in consumer spending, business investment and the labour market”.

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Recession

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