Stocks fall but it could have been worse

THE Australian stock market closed more than 2% lower, but it could have been much worse when considering the disastrous session on Wall Street – where the Dow Jones Industrial Average plunged almost 5% – and on European markets as recession fears linger.

The benchmark S&P-ASX 200 index fell as much as 4.5% to an intraday low of 3963.8 points before recovering in afternoon trading to close the day at 4051.3 points, down 2.