I was going to post this in business forum, but I’m posting here b/c that forum is pretty much dead. Anyway, can some smart guppies explain to those of us who are not capable of understanding global markets whats going on? The way is being shown on tv & in the print media it seems like end of the world is near.
Recession fears grip world markets - Nov. 13, 2008
Recession fears grip world markets
Asian stocks fall sharply on latest signs of U.S. downturn. European shares lackluster after
LONDON (CNNMoney.com) – Stock markets around the world were lackluster Thursday, pressured by Wall Street’s sharp drop overnight and more disappointing economic news.
European stock markets seesawed as investors digested new data out of Germany that showed the country’s economy, Europe’s largest, has fallen into recession.
In morning trading, Britain’s FTSE 100 was down about 1.3%. The CAC-40 in France and Germany’s DAX were both down slightly.
Germany’s Federal Statistical Office said Thursday that gross domestic product contracted by 0.5% in the July-September period compared with the previous quarter. The economy contracted by 0.4% in the second quarter – its first decline since late 2004.
U.S. stock futures, which offer an indication of how Wall Street will open when trading begins in New York, were mixed.
In Asia, stocks pulled back sharply as investors took in the latest evidence of the dour U.S. economy. Japan’s benchmark Nikkei index tumbled 5.3%. The Hang Seng index in Hong Kong sank 5.2%.
U.S. stocks fell sharply for a third straight session Wednesday as recession fears continued to batter sentiment. Over the past three days, the Dow has fallen more than 660 points, or 7%.
Disappointing corporate news, along with changes to the U.S. government’s $700 billion rescue plan for financial firms, fueled the selling.
Best Buy (BBY, Fortune 500), the nation’s largest electronics retailer, cut its full-year profit forecast, citing continued weakness in consumer spending.
After U.S. markets closed Wednesday, chip giant Intel (INTC, Fortune 500) warned of a sharp sales drop, sending its shares down 7% in after-hours trading.
Treasury Secretary Henry Paulson said Wednesday morning that the government will no longer use the $700 billion bailout fund to buy illiquid assets from banks, which was its original intent.
He also said the program will be broadened to include support for non-bank financial institutions that provide consumer credit, such as credit cards and auto loans.