HSBC was hit by another wave of selling on Thursday. Its shares sank a further 7 per cent to 625½p, extending losses this week to almost 15 per cent per cent, as several analysts made negative comments.

Merrill Lynch lowered its earnings forecasts for 2009 and 2010 by 17 per cent and 16 per cent respectively, citing a combination of a deteriorating global economic outlook and lower investment returns.