Global stock markets tanked yesterday, adding to last week’s rout, as
investors got panicky about a potential recession in the United States.


The Toronto Stock Exchange’s S&P/TSX composite index plunged 604.98 points, or 4.75 per cent, to close at 12,132.14. Stocks lost about $90 billion in value in the biggest drop since the tech bubble burst seven years ago.

Yesterday’s sell-off was on top of a 7 per cent drop last week on the TSX that wiped out all gains made last year.

All the world’s major economies sold off, with stock prices falling 7 per cent in France and Germany, 5 per cent in China and Britain and 4 per cent in Japan. In Asia, India’s benchmark index tumbled 7.4 per cent, while Hong Kong’s Hang Seng index plummeted 5.5 per cent.