US markets enter bear territory

By James Quinn, Wall Street Correspondent Leading US indices closed in firm bear market territory for the first time in the current downturn as oil prices soared above $144 and General Motors faced further questions over its liquidity. The benchmark Dow Jones Industrial Average closed down 166.75 points at 11,215.51, some 20pc below its October 2007 high - the classic definition of a bear market being a 20pc fall from its peak. Likewise, the technology-focused Nasdaq index fell 53.31 points to 2,251.46 to enter its own bear market. Traders moved to sell equities as oil soared to break a series of records, hitting a new intra-day high of $143.91, closing at a record settlement price of $143.57, only to go on to touch a new all-time high of $144.32 in after-hours trading. The markets were also weighed down by GM, one of the... [read full story]