World markets tumble due to fears over economic recovery

GLOBAL markets stumbled yesterday, prompting fears that the recent stock market rally could be over. <br /><br />In London, the FTSE 100 shed 68.96 points, or 1.5 per cent, closing at 4,645.01. Across the Atlantic, the Dow Jones Industrial Average also shed 186 points, or two per cent.<br /><br />Sterling fell against the dollar while the price of oil dipped, causing some analysts to call an end to the rally that has boosted the City this summer. <br /><br />The fall in the FTSE was the biggest one-day drop since early July, and comes hot on the heels of a 0.9 per cent drop on Friday.<br /><br />Markets reacted negatively to figures from Japan which showed that while the world&rsquo;s second largest economy is no longer in recession, it has not bounced back to the extent that had been anticipated. <br /><br />The MSCI index of shares in the world&rsquo;s 23 richest nations was down 2.6 per cent last night, its biggest drop in two months. And the Chinese Shanghai Composite Index shed 5.8 per cent, its worst one-day fall since November. <br /><br />Meanwhile, the pound fell by around two cents against the dollar, falling to $1.63.