Japan's Nikkei fell 2 per cent in early trade. Australian shares slumped 2 per cent as well, led by losses for banking stocks, while miners dropped heavily too as the spectre of worldwide banking stress has traders getting out of all kinds of growth-sensitive assets.
Switzerland's central bank pledged to fund Credit Suisse"if necessary," which lifted Wall Street indexes from lows in afternoon trade, but the intervention isn't exactly soothing market fears. The Swiss franc fell 2 per cent in its steepest drop for seven years. The Bank of England was holding emergency talks with international counterparts the Telegraph newspaper reported on Wednesday. The Bank of England declined to comment.
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