Stock markets have started to climb higher, recovering the losses seen earlier in the day.
Another £46 billion was wiped off the value of the FTSE 100 index yesterday after shedding another 178 points during the day's trading, as fears over the state of the global economy refused to go away.
Its closing mark of 5,068.95 was a 13 month low and took the total amount of value lost by the index to £210 billion in just over a week.
It had been hoped the European Central Bank's support of the bond markets in Italy and Spain would help calm investor nerves.
However, this morning investors initially seemed to fear that a financial crisis in the Eurozone had not yet been averted, while confidence that the US is able to keep its own house in order remains low.
Over the weekend, the ratings agency Standard & Poor's stripped America of its AAA credit rating, downgrading the world's largest economy to AA+.
Uncertainty in the UK has been compounded further by the rioting seen on the streets of London and other major cities over the past few days.
At 9.30 this morning, the FTSE 100 index had slipped below the 4,800 mark.
A gradual recovery has been apparent since, however, with the index standing at 5,132 at 4pm, 64 points and 1.26% higher than at the start of the day.
Over night, the US Dow Jones index suffered its biggest fall since the height of the credit crisis in 2008, dropping by 5.6%.
This afternoon, however, it opened up 1.2% at 10,939.12.
This morning, the markets in Asia closed having endured further steep falls, although around half of their overnight losses had been recovered by the close of trading.
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