Wall Street stocks were in and out of positive territory as investors weighed Federal Reserve plans to create a commercial paper funding facility with the absence of rate cuts by world central banks

The Australian dollar eked out gains on Tuesday after the Reserve Bank of Australia slashed interest rates by 100 basis points, double the amount expected

Money market rates surged higher after the Federal Reserve announced a new commercial paper lending facility to jump start funding for companies and ease tensions

European stocks swung wildy in volatile trade as fears that banks need additional funding sent financial stocks tumbling.

Banks were again under pressure amid worries about the health of the financial sector. The prime minister, chancellor, governor of the Bank of England and head of the FSA were meeting to discuss the situation amid talk of further government intervention

Commodities markets steadied on Tuesday after sharp falls in the previous session amid the ongoing storm sweeping global financial markets

Australia's central bank gave financial markets a much-needed fillip on Tuesday by slashing its main interest rate by a full percentage point

Geir Haarde, Iceland's prime minister, attacked the country's allies for not lending it financial support as it battled to save its economy, forcing it to turn to Russia for a €4bn loan

South Korea's finance minister on Tuesday said the government will examine if there is a speculative force behind the won's recent slide against the dollar, after the local currency plunged to a seven-year low

Further travails for banks in Europe reversed the recent easing in overnight lending rates, while the US Federal Reserve dramatically increased its efforts to alleviate stress in the money markets

Gulf equity markets suffered heavy losses amid mounting fears about contagion from the global financial crisis and domestic concerns about the region's real estate markets

Stocks in São Paulo plunged by more than 15 per cent, triggering circuit breakers twice during the session.

Russia's benchmark RTS index suffered its sharpest fall in its 13-year history as investor jitters intensified over global financial turmoil, falling oil and commodity prices and overleveraged oligarchs at home

The shift in policy came as the Bombay Stock Exchange's benchmark Sensex index dropped 6 per cent to 11,801; the first time it had fallen below the 12,000 mark for two years