Market slump suggests EU rescue package may be too late

As Europe rallies behind a rescue plan for the banking sector and the G8 club of most industrialised states are set to hold global talks on tackling the financial crisis, a fresh slump in stock markets indicates the reaction may have come too late to prevent a worldwide recession.

After an initially positive response by markets to earlier initiatives by G7 finance ministers (G8 minus Russia) and a rescue package by the 15-strong euro area at the weekend, gloom descended on stock markets...