Markets plunge on fears of US slowdown

Global stock markets tumbled yesterday on fears that the US economy was facing a sharp slowdown as the first monthly fall in employment in four years made an interest rate cut this month appear all but certain. The evidence of weakness in the jobs market shocked investors and raised expectations that the US Federal Reserve would be forced to cut interest rates by as much as half a percentage point this month to stave off the risk of recession. In London the FTSE 100 fell 1.9% to 6,1912.2, below its starting level for the year. Financial Times 08/09/07 1  The Independent 52