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Recession fears send world markets down
(Agencies)
Updated: 2008-11-20 21:16 LONDON -- European and Asian stock markets tumbled Thursday after recession fears sent Wall Street plunging the day before.
The FTSE 100 index of leading British shares was down 87.46 points, or 2.2 percent, at 3,918.22, while Germany's DAX was 145.17 points, or 3.3 percent, lower at 4,208.92. The CAC-40 in France was 111.98 points, or 3.6 percent, lower at 2,975.91.
The losses in Europe and Asia come in the wake of a 427 point, or 5.1 percent, slide in the Dow Jones index of leading US shares. The broader Standard & Poor's 500 index also slid 6.1 percent to 806.58. Both closed at their lowest levels since March 2003. Wall Street appeared poised for another bout of selling. Dow futures were down 92 points, or 1.1 percent, to 7,935, while S&P futures were down 12.6 points, or 1.6 percent, to 799.9. "Alongside the dismal outlook painted by leaders in the US automotive industry, growing fears surrounding the drastic rate of disinflation across the globe and renewed fears for the US banking sector, this has sent investors scrambling for cover once more," said Neil Mellor, an analyst at Bank of New York Mellon. The uncertainty facing companies around the world was evident after US consumer prices fell 1 percent last month, the largest amount in the past 61 years. While beneficial to consumers, lower prices hurt corporate profits and raise the threat of deflation. So far, Japan, Hong Kong and European countries including Germany and Italy are officially in recession and most expect the US and Britain to be joining them soon, whatever fiscal stimulus policy-makers come up with in the coming days and weeks. |
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