Global markets shiver on fears of economic chill

Fears of a new economic meltdown are rising as governments seem to be unable to contain the damage from worsening economic condition.

The grim mood was reflected in markets across the world as a selling frenzy took hold, on concerns that policymakers lacked the will and resources to revive the faltering economies.

The Federal Reserve's latest move to cut interest rates further failed to impress investors, who seemed to the resigned to the inevitability of a double-dip recession.

Global markets shivered yesterday with Asian and European stocks tanking as they pulled the Dow Jones industrial average down to levels closer to its worst week, after the depths of Wall Street's meltdown in 2008. Even gold was no longer a safe bet to turn to.

Meanwhile, interest rates on US Treasury bonds were down to new lows reminiscent of the 1940s as investors rushed to corner yields.

Analysts say the fear of a repeat of 2008 was driving the frenzy.