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7 min - Oct 6, 2008AP Wall Street tumbles amid global sell-off Monday October 6, 12:27 pm ET By Joe Bel Bruno, AP Business Writer Stocks decline amid global worries credit crisis is spreading; Dow falls below 10,000 NEW YORK (AP) -- Financial markets took a bleak view of the future Monday, seeing contagion in a credit crisis that threatens to cascade through economies globally despite government efforts to provide relief. The Dow Jones industrials skidded more than 400 points and fell below 10,000 for the first time in four years, while the credit markets remained under strain. ADVERTISEMENT Investors around the world have come to the sobering realization that the Bush administration's $700 billion rescue plan won't work quickly to unfreeze the credit markets. Global banks, hobbled by wrong-way bets on mortgage securities, still remain starved for cash as credit has dried up. That's caused stocks to plunge in the U.S., Europe and Asia, and drove investors to sink money into the relative safety of U.S. government debt. Fears about a global recession also caused oil to drop below $90 a barrel; and the benchmark index that gauges fear in the market jumped to the highest level in its 18-year history. "The fact is people are scared and the only thing they're doing is selling," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research. "Investors are cleaning out portfolios and getting rid of everything because nothing seems to be working." The selling was so extreme that only 98 stocks rose on the NYSE -- and 3,092 dropped. That's a telling sign considering the stock market is considered a leading economic indicator, with investors tending to buy and sell based on where they believe the economy will be in six to nine months. Monday's steep decline on Wall Street indicates that investors are becoming more convinced that the country is leading a prolonged economic crisis that is spreading to other nations. Over the weekend, governments across Europe rushed to prop up failing banks, while the governments of Germany, Ireland and Greece also said they would guarantee bank deposits. As the U.S. tries to shore up its battered banking system, the German government and financial industry agreed on a $68 billion bailout for commercial-property lender Hypo Real Estate Holding AG. And France's BNP Paribas agreed to acquire a 75 percent stake in Fortis's Belgium bank after a government rescue failed. The Fed also took fresh steps to help ease seized-up credit markets. The central bank said Monday it will begin paying interest on commercial banks' reserves and will expand its loan program to squeezed banks. In midday trading, the Dow Jones industrial average fell 476.13, or 4.61 percent, to 9,849.25, dropping below 10,000 for the first time since Oct. 29, 2004. At one point, the Dow was down nearly 600. Broader indexes also tumbled. The Standard & Poor's 500 index shed 53.12, or 4.83 percent, to 1,046.11; and the Nasdaq composite index fell 101.86, or 5.23 percent, to 1,845.53. The Russell 2000 index of smaller companies dropped 26.33, or 4.25 percent, to 593.07. In Asia, the Nikkei 225 closed 4.25 percent lower. Europe's stock markets also declined, with the FTSE-100 down 5.20 percent, Germany's DAX down 7.07 percent, and France's CAC-40 down 9.04 percent. The anxiety was again obvious in the credit markets. The yield on the three-month Treasury bill slipped to 0.42 percent from 0.50 percent late Friday. Demand for bills remains high because of their safety; investors are willing to take extremely low returns just to have their money in a secure place. Investors also moved into longer-term Treasury bonds. The yield on the 10-year note fell to 3.49 percent from 3.60 percent late Friday. New York Stock Exchange: http://www.nyse.com Nasdaq Stock Market: http://www.nasdaq.com
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2 Oct 2008 at 11:42pm The credit crunch and the sharp loss of confidence since the failure of Lehman Brothers a fortnight ago claimed four victims in the European finance sector over the weekend and another major US bank. ...
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1 Oct 2008 at 7:58pm DUBLIN, Ireland - Irish lawmakers approved a comprehensive bank guarantee Thursday, granting taxpayer protection to all deposits and debts of Irish-owned banks. The sweeping deal commits Ireland to insure unlimited deposits and the interbank debts of ...
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23 Sep 2008 at 4:33pm DUBLIN, Ireland? Shares on the Irish Stock Exchange fell 8 percent Tuesday to an 11 1/2-year low, driven by fears over Irish banks' exposure to a real estate slump -- and a sell-off of their shares by troubled U.S. investment banks. The Dublin ...
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23 Sep 2008 at 9:09am DUBLIN, Ireland - Shares on the Irish Stock Exchange fell 8 percent Tuesday to an 11 1/2-year low, driven by fears over the profitability of Ireland's property-exposed banks. Ireland's market is more heavily weighted in financial stocks than other ...
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22 Sep 2008 at 7:54pm DUBLIN, Ireland - Shares on the Irish Stock Exchange fell 8 percent Tuesday to an 11 1/2-year low, driven by fears over the profitability of Ireland's property-exposed banks amid a real estate slump ? and as troubled U.S. investment banks dump ...
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19 Sep 2008 at 10:04am DUBLIN/MADRID : Bank of Ireland on Friday said it had not been approached by any potential buyers, following a media report that it was being eyed by the eurozone's largest bank Santander . "Bank of Ireland notes recent media speculation and ...
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