investors fear further stock market falls, page-2

"Everything is very risk-averse at the moment," she said.

"I think there has been enforced liquidation out of positions, whether that be hedge funds or from margin lending.

"There are tentative signs that we are nearing the end of the financial panic," Mr Hogan said.

"But for financial markets the end of the financial crisis may signal the start of the economic downturn.

"The very real prospect of a global recession was underscored this week with a host of US data showing a virtual collapse in consumer and business activity in the September and October period."