Saguaro
10-22-2007, 09:55 AM
LONDON (Reuters) - Worries about the U.S. economy and fears over bank credit rippled across financial markets on Monday, sending stocks sharply lower and setting up Wall Street for a poor start.
The dollar rebounded from earlier record lows and oil prices eased more than $1.50 but remained above $87 a barrel.
Finance leaders from the Group of Seven industrialized nations said over the weekend that the world economy was fine but that financial market conditions required close monitoring because of shortcomings exposed by the credit crisis.
This did little to allay market concerns, particularly following disappointing earnings from U.S. economic bellwether Caterpillar Inc on Friday, which also said there was a 50-50 chance of a U.S. recession next year.
MSCI's main world stock index was down 1.2 percent and its normally high-flying emerging market counterpart fell 2.3 percent.
Stephen Dowds, head of international equities at Northern Trust Global Investments, said investors were reacting to the sharp losses on Wall Street on Friday but also to the current crop of earnings statements.
"We have had a flurry of disappointments," he said.
European stocks took a hit. The FTSEurofirst 300 index of top European shares was down 1.8 percent.
Earlier, Japan's Nikkei average ended at a four-week closing low, down 375.90 points or 2.2 percent at 16,438.47. The broader TOPIX index fell 1.8 percent to 1,563.07.
DOLLAR RECORD LOW
The dollar lifted itself off fresh lows set shortly after the G7 finance chiefs' meeting over the weekend as traders booked profits on bets against the greenback and continued to buy the yen versus a host of currencies.
Having hit record lows against the euro and a basket of major currencies earlier on Monday, the dollar bounced back sharply in thin trade.
The euro was down 1.2 percent on the day at $1.416, having traded at a fresh lifetime high of $1.4348 earlier in the day.
The dollar index was up 1.1 percent at 78.03, rebounding from a post-Bretton Woods low of 77.093 struck earlier.
Two-year bond yields were 5.6 basis points lower at 3.945 percent, while 10-year yields were at 4.164 percent, down 4.8 basis points.
http://news.yahoo.com/s/nm/20071022/ts_nm/markets_global_dc;_ylt=AitAcRuplcEA2UT4o2F6INZZ.3Q A
The dollar rebounded from earlier record lows and oil prices eased more than $1.50 but remained above $87 a barrel.
Finance leaders from the Group of Seven industrialized nations said over the weekend that the world economy was fine but that financial market conditions required close monitoring because of shortcomings exposed by the credit crisis.
This did little to allay market concerns, particularly following disappointing earnings from U.S. economic bellwether Caterpillar Inc on Friday, which also said there was a 50-50 chance of a U.S. recession next year.
MSCI's main world stock index was down 1.2 percent and its normally high-flying emerging market counterpart fell 2.3 percent.
Stephen Dowds, head of international equities at Northern Trust Global Investments, said investors were reacting to the sharp losses on Wall Street on Friday but also to the current crop of earnings statements.
"We have had a flurry of disappointments," he said.
European stocks took a hit. The FTSEurofirst 300 index of top European shares was down 1.8 percent.
Earlier, Japan's Nikkei average ended at a four-week closing low, down 375.90 points or 2.2 percent at 16,438.47. The broader TOPIX index fell 1.8 percent to 1,563.07.
DOLLAR RECORD LOW
The dollar lifted itself off fresh lows set shortly after the G7 finance chiefs' meeting over the weekend as traders booked profits on bets against the greenback and continued to buy the yen versus a host of currencies.
Having hit record lows against the euro and a basket of major currencies earlier on Monday, the dollar bounced back sharply in thin trade.
The euro was down 1.2 percent on the day at $1.416, having traded at a fresh lifetime high of $1.4348 earlier in the day.
The dollar index was up 1.1 percent at 78.03, rebounding from a post-Bretton Woods low of 77.093 struck earlier.
Two-year bond yields were 5.6 basis points lower at 3.945 percent, while 10-year yields were at 4.164 percent, down 4.8 basis points.
http://news.yahoo.com/s/nm/20071022/ts_nm/markets_global_dc;_ylt=AitAcRuplcEA2UT4o2F6INZZ.3Q A