Global sell-off continues as US fears spread

European and Asian stock markets declined sharply in Wednesday trading, mirroring overnight falls in New York, on concerns the US recovery is faltering.

The sharp sell-off comes despite a finalised deal to increase the US debt ceiling. In London, the FTSE 100 opened 1.3% lower at 5,642, adding to Tuesday's 1% decline. Meanwhile, the German Dax is 1.2% lower after falling 2.26% yesterday while the French Cac 40 is 1.3% lower. In Asia, the MSCI Asia Pacific Index lost 2.2% while Japan's Nikkei 225 Stock Average retreated 2% and South Korea's Kospi index fell 2.6%. The declines tracked a 2.2% drop on Wall Street on Tuesday, where the Dow Jones shed almost 270 points to 11,866. It follows the publication of figures in the US show...