Global markets back in red as Dow Jones drops 400 points

Global markets have slipped back into the red after the Dow Jones posted heavy losses on the opening bell, as fears of a double-dip recession intensify.

The Dow Jones has pulled back after a late rally at the end of yesterday's session, with the index down 3.56% or 400 points to 10,839, at 3.20pm. It failed to keep up the momentum gained from the Federal Reserve's announcement interest rates will not rise above 0.25% until Q3 2013. The FTSE was boosted by the news in early trading, gaining 1%, before slipping firmly into the red. The index is now down 2.48% or 128 points to 5,036, with enthusiasm dampened by the Dow Jones' weak opening. Yields on 10-year gilts have fallen to a record low of 2.51% following the move by the Bank o...