It was a dramatic day for the Dutch-Belgian financial group Fortis. At about 3 pm the share had fallen by 20% compared with the opening price. The share rallied back recovering some of the lost ground. Fortis closed the day in Brussels with a 9% loss.
Other banks, such as KBC and Dexia also fared poorly today. Because the big financial groups have a significant impact on the Bel20 index, the Bel20 too fell, closing almost 3% lower on Tuesday.
Investors have been dumping equities, oil and emerging market assets to rush into safe-havens. The global exodus from risky assets extended to a second Tuesday.
European Central Bank (ECB) injects more capital
The European Central Bank injected €70 billion into money markets on Tuesday. This is more than double the €30 billion injected on Monday. In total 56 banks in the eurozone have requested credits of €102 billion.