Are financial stocks toxic?
Stockmarkets the world over fell as the contagion from the collapse of Lehman and worries about the state of AIG sent traders into a frenzy of selling. In London traders on the FTSE dumped stock and sent the market down by over 4 per cent to a three year low, while the Dax and the Cac 40 in France fell by around 2.5 per cent. The Dow Jones fell to 10.800, off by over 1 per cent, while the Nasdaq and S&P declined by 1.24 and 1.34 per cent respectively. The UK was hit by more bad news as figures showed inflation at 4.7 per cent.