Markets tumble despite G7, IMF moves

TOKYO, October 27, 2008 (AFP) – Growing fears of global recession sent share and oil prices plummeting Monday as markets shrugged off new moves to protect shell-shocked economies and a G7 pledge to stabilise the financial system. The IMF unveiled rescue plans for Ukraine and Hungary, South Korea slashed its key interest rate, Japan announced fresh action to boost its ailing stock market and Australia’s central bank intervened to prop up its currency.

The European Central Bank also announced one-week dollar loans against euro cash as part of its efforts to keep interbank money markets flowing.

But the moves failed to restore calm to the markets as Tokyo’s main index hit a 26-year low while Europe’s main stock exchanges nosedived at the start of the trading week.

And on the oil market, Brent crude prices fell below 60 dollars per barrel as traders responded to the potential impact of recession on energy demand.

Dealing meanwhile was suspended on the Thai stock exchange towards the end of its trading day after a 10.00 percent fall, while Bucharest (BVB) did likewise shortly after the market opened there following falls of almost 13 percent in some share prices.

The G7 club of rich nations vowed to cooperate