Stock Markets Fall Worldwide! Recession?
Stocks markets fell worldwide as concern increased that a widening credit crisis may hurt economic growth and earnings across the world. The MSCI World has dropped 7.4 percent since touching a record on July 19 on concern the rout in U.S. subprime mortgages may spill over into the economy, erode earnings growth and curb takeovers.
Societe Generale SA and Deutsche Bank AG led Europe's Dow Jones Stoxx 600 Index to its steepest loss in four years. ABN Amro Holding NV, the target in the world's biggest banking takeover, dropped to a four-month low on speculation Barclays Plc will pull out of the deal. Countrywide Financial Corp., the biggest U.S. mortgage lender, fell after saying ``unprecedented disruptions'' may crimp profit. Macquarie Bank Ltd., Toyota Motor Corp. and Samsung Electronics Co. paced declines in Asia.
The Bank of Japan added 1 trillion yen ($8.5 billion) to the financial system and the Reserve Bank of Australia lent the most in more than three years, joining the U.S. Federal Reserve and the European Central Bank in responding to the credit turmoil.
8/10/2007 5:43:46 AM