Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

Alpha Condé reacts to Dadis Camara's bid to return home

Read more

MEDIAWATCH

'We need an American in every train compartment'

Read more

THE WORLD THIS WEEK

When China Sneezes: World markets rattled by bubble burst (part 2)

Read more

THE WORLD THIS WEEK

Desperate to get to Europe: How to handle migrant surge? (part 1)

Read more

FRANCE IN FOCUS

Behind the scenes of France's National Assembly

Read more

#TECH 24

Saving water, one shower at a time

Read more

FOCUS

Katrina, ten years on: Young survivors still grapple with trauma

Read more

ENCORE!

Has New Orleans got its groove back?

Read more

REPORTERS

Meet the French troops hunting jihadists in Sahel

Read more

US markets plunge at open amid recession fears

Text by AFP

Latest update : 2008-12-09

Wall Street's main indexes fell sharply as trading opened on continuing fears that a global recession is imminent. European and Asian markets tumbled earlier in the day.

View our special report: 'The crisis hits Main Street'

 

 

Wall Street shares plunged at the open Friday amid a wave of panic selling and a meltdown in share prices around the world on rising fears of a global recession.
   
The Dow Jones Industrial Average slid 403.89 points (4.69 percent) to 8,287.36 in the first 10 minutes of trade.
   
The Nasdaq saw a dive of 86.75 points (5.41 percent) to 1,517.16 and the Standard & Poor's 500 index sank 50.26 points (5.53 percent) to 857.85.
   
The market action came amid a wave of panic in markets around the world amid mounting evidence that major economies are heading for recession from a credit crunch and banking crisis.
   
"We have now reached a point where fundamentals and long-term valuation considerations do not matter any more for financial markets," said economist Nouriel Roubini at New York University.
   
London stocks plunged more than nine percent to a five-year low, Frankfurt crashed by 10.13 percent and Paris tumbled by more than seven percent approaching the half-way stage of trade.
   
In Asia, Tokyo sank nearly 10 percent, and Hong Kong tumbled as concern grew that the chronic financial crisis was taking a heavy toll on company earnings.
   
"There is a free fall as most investors are rapidly deleveraging and we are on the verge of a a capitulation collapse. What matters now is only flows -- rather than stocks and fundamentals -- and flows are unidirectional as everyone is selling and no one is buying as trying to buy equities is like catching a falling knife," Roubini said.
   
"There are no buyers in these dysfunctional markets, only sellers and panic is the ugly state of this destabilizing game."

Date created : 2008-10-24

COMMENT(S)