'We're working to reduce disruptions and minimize the impact of these financial market developments on the broader economy,' Mr Bush said amid fears that US economic turmoil could trigger a global financial meltdown. Meanwhile, US stocks slumped at the open on Monday after a bankruptcy filing by investment firm Lehman Brothers and the distress sale of Wall Street rival Merrill Lynch roiled global markets.

The blue-chip Dow Jones Industrial Average plunged 288.55 points (2.53 per cent) to 11,133.44 in the first 10 minutes, not as steep as the loss of more than four percent in most European bourses.

The Nasdaq composite tumbled 58.79 points (2.60 per cent) to 2,202.48 and the broad-market Standard & Poor's 500 index lost 38.61 points (3.08 per cent) to 1,213.09.

The market action came as Lehman, unable to find a buyer during emergency weekend talks, filed for bankruptcy protection and rival Merrill Lynch rushed into a deal to sell itself to Bank of America for 50 billion dollars.

'Wall Street is reeling this morning,' said Mr Chris Lafakis at Economy.com.

'Today will be difficult for equities as markets digest the events that unfolded over the weekend.' -- AFP