Stocks across Europe and Asia fell sharply on Monday amid fears of a continuing slide in the American economy. Financial managers are looking for safe havens for investments. The fear is a slumping American economy will pull the rest of the world down with it.
It has been the biggest one day plunge since 9/11. Here is a report from the Financial Times.
Tumbling Asian shares led European stock markets into their biggest one-day fall since 9/11 as the prospect of a US recession and further fall-out from credit market turmoil prompted near panic among investors, who rushed to the safety of government bonds. About €339bn ($490bn) was wiped off the market value of Europe's FTSE Eurofirst 300 index and £76bn ($148bn) from the FTSE 100 index in London, which suffered its biggest points slide since it was formed in 1983.
Fear of a US recession is a part of the picture. Credit Suisse says, "What we are seeing now has the hallmarks of both a financial shock and the beginning of a [US] recession, or at least of growth grinding to a halt."
Everyone is watching what will happen tomorrow when Wall Street reopens after the Martin Luther King holiday. It is expected that stocks will decline through the week. No one sees a bottom at this time.