Early trading leads to double-digit falls as uncertainty continues to disrupt banking markets
Shares in housebuilders have seen double-digit falls this morning on the back of uncertainty in the banking markets.
The FTSE 100 fell 4% after opening on the news that the German government appears to have given 100% guarantee for all private bank deposits.
Such a move would give German banks an advantage when trying to borrow money on world markets.
Barratt and Taylor Wimpey fell 15% and 19% in early trading to 98p and 29p respectively.
Elsewhere, Persimmon was down 10% to 361p, Redrow fell 7% to 163p, Bovis Homes was 5% down to 392p, Bellway was down 9% to 509p and Berkeley fell 12% to 700p.
Prime minister Gordon Brown has created an economic war council to deal with the crisis. The National Economic Council will meet twice every week and includes former chairman of Land Securities Paul Myners.
He became City minister in this weekend’s reshuffle. New business minister Peter Mandelson will also sit on the council.
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