LONDON, Nov 13: Global stock markets mostly fell on Thursday on news that the German economy was officially in recession and after heavy losses in Asia and overnight on Wall Street.

New York stocks took a hammering on Wednesday after the US government tore up a plan to buy toxic mortgage assets. The gloom spread to Asia amid fears of a sharp worldwide economic slowdown.

Germany announced on Thursday that its economy has officially entered recession, after shrinking for the second successive quarter, as Europe’s biggest economy was slammed by the ongoing global financial crisis.

Adding to the sense of economic doom, British telecoms operator BT Group announced that it would slash 10,000 jobs, or more than six per cent of its global workforce, as the country also faces a likely recession.

Thousands of British jobs have also been axed this week by British-based cable television firm Virgin Media, telephone directories group Yell, house builder

Taylor Wimpey and drugs giant GlaxoSmithKline.

“It is difficult to think of anything apart from doom and despair,” said Capital Spreads managing director Simon Denham in London.

German investors fretted over news that the nation’s economy has fallen into recession for the first time in five years as a result of the global financial crisis.

The Frankfurt stock market fell 0.49 per cent near the half-way stage on Thursday. London was down 0.98 per cent, while Paris added 0.65 per cent.

In Asia, Tokyo tumbled 5.25 per cent, Hong Kong dived 5.15 per cent and Sydney shed 5.9 per cent to finish at a four-year low.

Official data showed on Thursday that Germany shrank 0.5 per cent in the third quarter, following a 0.4-per cent contraction in the second quarter.

That met the technical definition for a recession -- which is two consecutive quarters of shrinking economic activity.

“Germany -- and the eurozone -- have to get ready for a serious recession,” warned Bank of America senior economist Holger Schmieding.

Wall Street plunged on Wednesday as global markets were rattled by signs of impending recession in Europe and a shift in the US government’s financial bailout strategy.

A profit warning from the biggest US consumer electronics retailer, Best Buy, also sapped confidence, which was already fragile following weeks of market turmoil sparked by a global credit crunch.

Adding to the gloom, Intel Corporation, the world’s biggest computer chipmaker, cut its fourth-quarter revenue projections, saying the economic slowdown would hurt its business across the board.—AFP