Wall Street slumps on weak manufacturing data

Shares on the major US stock markets shed more than 2% overnight as weak manufacturing data from the US, Europe and China fuelled fears of a global slowdown.

The Dow Jones fell 1.96% to 12,573, the Nasdaq shed 2.44% to trade at 2,859, while the S&P 500 dropped 2.23% to 1,325. Yesterday the Federal Reserve revised its GDP target down from 1.9 to 2.4%, a 0.5% decrease on its previous forecast, further unsettling markets, although the revision was widely expected. Investors were also digesting the Federal Reserve's move to extend Operation Twist in lieu of an outright QE3 stimulus programme. Asian markets were also weaker overnight, with the Hang Seng falling 1.42% and the Shaghai index down 1.35%. Meanwhile, HSBC reported yesterday tha...