Black Monday- Shares worst day since the financial crisis

Global markets collapsed Monday, when the stock market correction saw a rare stoppage of Wall Street trading and a crash in oil prices, with analysts described the markets as "utter carnage”.

The main financial indexes in the US had a disastrous day’s trading with the biggest losses since the financial crisis of 2008, London's index of top shares ended the day nearly 8% down with losses estimated to be £125bn, and drops hit across Europe and Asia as a row between Russia and Saudi Arabia saw oil prices plunge.

The major stock indexes in the USA fell so sharply at the start of trading, that trading was suspended for 15 minutes, so the "circuit breaker" would stop panic selling. The Dow Jones fell 7.8% (more than 2,000 points), the biggest points-drop in history and the largest loss of value since the financial crisis. The Nasdaq dropped about 7.3% and S&P 500 fell 7.6%.

It's not all bad news for investors as traditionally, the S&P 500 has always had a positive next trading day, following a 5% or more daily drop, gaining more than 2.2% on average. Historically, S&P 500 returns 12.75% in the six months after a daily 5%+ drop.

In the UK and Europe, following the current financial-market meltdown, the pressure is on the Bank of England and the European Central Bank to slash interest rates from as early as this week, with potential other measures to support the increasingly fragile economies. Any changes could result in immediate new trends across multiple markets.

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