Equities continue downward spiral

Equity markets are now in dangerous territory, as any feeling that the cavalry were suddenly going to ride in and save the day has disappeared and nothing has come out of the US last week and the G7 meeting over the weekend, to halt what is now a substantial bear market.

Banking shares have come in for another pounding over concerns that they are heavily exposed to Greek and Italian debt, French banks especially.

During one of the most volatile days in the recent financial crisis, the Footsie dropped to 4750 intraday, before turning around to show an amazing 10% trading range in one day but with the level of 5,000 coming at us fast and chartists calling the market substantially lower, the next time that level is seen, there will probably be few buyers around to take it higher.