The New Nation - Internet Edition

Agency, Laden

Stock markets across Europe have fallen after dramatic share price falls in Asia.

The FTSE 100 share index was down 8% at 3,964 points. It opened 9.8% lower at 3887 points, below the 4,000-point level for the first time in five years.

There were similar falls across Europe - Paris was down 8.4% while Germany was down 9.1%.

Investors fear a global slowdown, despite interest rate cuts and huge cash injections by central banks.

The Prime Minister, Gordon Brown, has again called on other countries to follow Britain's bank rescue package.

"What we need now is for other countries to be doing similar things," he told the BBC news channel.

He said he was confident the bail-out would eventually help stabilise the economy.

"Everybody depends on banks. We're trying to get the banks to do what they've traditionally done, to get the flow of money to businesses, to help people with their mortgages, to make sure people's savings are safe," he said.

In other major developments:

The British pound tumbled to a five-year low against the US dollar to trade at $1.6902 at one point, but recovered slightly later. It also fell against the euro to 1.245 euros

Tokyo's shares plunged 24% during the week, double their weekly fall during the 1987 market crash

Oil prices plummeted to a one-year low in European trading, with the price of US crude oil falling below $83 a barrel.

The three-month rate at which banks lend dollars to each other - known as Libor - has risen to 4.8%

Finance ministers from the G7 are to meet in Washington later and President Bush is to make an address to the American people.

Moscow and Jakarta stock markets remain suspended because of excessive volatility

Trading in the Vienna market was suspended until Friday afternoon.Despite concerted government action, investors are increasingly fearful the financial crisis will prompt a global recession.

Heavy falls were seen across Asia's markets as a climate of fear took hold on Friday.

In Japan, the Nikkei index slumped in its biggest one-day fall since the 1987 stock market crash. The crisis also claimed its first Japanese financial institution, with the insurance company Yamato Life going bankrupt.

"Selling is unstoppable in New York and Tokyo," said Yutaka Miura, senior strategist at Shinko Securities in Tokyo.

"Investors were gripped by fear." Elsewhere in Asia was a similar story.