LONDON, Jan 23: An unending torrent of bad economic and corporate news pushed global stock markets lower again on Friday, with every attempted advance undercut before investors could gain any momentum.

Most European markets ended lower, with the exception of London, which eeked out a gain of 0.01 per cent at the end of very bad week to finish on 4,052.47 points.

In Paris the CAC 40 fell 0.71 per cent to finish at 2,849.14 points, while in Frankfurt the Dax lost 0.96 per cent to 4,178.94 points. There were modest gains in Spain and Belgium, but all other major markets were lower.In the US, stocks came under fresh pressure as investors worried about corporate earnings, the faltering financial sector and the government’s ability to combat the recession.

The Dow Jones Industrial Average slid 1.43 per cent to 8,006.28 at 1603 GMT.

The tech-heavy Nasdaq dropped 0.23 per cent to 1,462.17 and the broad-market Standard & Poor’s 500 index retreated 0.78 per cent to 821.01.

Briefing.com’s Patrick O’Hare said the market’s inability to stretch the positive bias beyond a single session reflected the “understandably sceptical manner in which equity markets participants are operating.”

“The scepticism toward the financial sector and the government’s ability to manage the situation is on display again,” he said.

As companies begin to report their earnings for the last quarter, General Electric said net profit fell 44 per cent in the fourth quarter and 22pc for 2008 amid “a very tough environment.” Its shares plunged 7.94 per cent to 12.41.

“The 2008 reporting season that is about to start and promises to be terrible. We estimate that markets will get worse before they get better. We advise to stay rather defensive,” said strategists at French bank Societe Generale.

In Europe, sentiment was hit by news that Britain had officially joined a growing list of rich nations in recession.

The generally-used technical definition of a recession is two quarters running of negative economic growth.

The financial sector was sharply lower again amid fears of further writedowns and the need for public cash to help the struggling financials survive.

Barclays shares fell for the ninth consecutive day despite assurances from chief executive John Varley that the bank is doing what it can to “create the conditions” that will allow its stock to rise over time.

Its shares closed down 13.51 per cent at 51.20 pence.

“I am acutely conscious that shareholders had a hard time ... What we can’t do is control the share price. What we can do is control the conditions which support the share price, by our performance,” Varley said in an interview with Cantos Communications Ltd.

The British insurance sector was also badly hit, with Old Mutual down 13.61 per cent at 49.50 pence, Aviva off 6.71 per cent at 264 pence and Prudential 5.87 per cent lower at 288.50 pence.—AFP