Wall St. Slides on Global Rout


U.S. stocks sank, capping the worst week ever for the Standard & Poor's 500 Index, on concern the escalating credit crises will snuff out consumer spending.

Exxon Mobil Corp. tumbled 12 percent, its steepest loss since 1987, as oil fell below $80 a barrel on expectations a weakening economy will slow demand. Macy's Inc., the second- biggest department-store chain, plunged as much as 19 percent after saying profit will fall more than it forecast. Morgan Stanley slid 34 percent and Goldman Sachs Group Inc. lost 18 percent as Moody's Investors Service said it may cut their credit ratings as investor confidence sours.

The Standard & Poor's 500 Index tumbled 44.7 points, or 4.9 percent, to 865.22 at 11:45 a.m. in New York, extending its weekly drop to more than 21 percent. The Dow Jones Industrial Average lost 370.61, or 4.3 percent, to 8,208.58. The Nasdaq Composite Index retreated 3.5 percent to 1,587.64. Ten stocks dropped for each that rose on the New York Stock Exchange.

Canadian stocks followed global markets lower, led by energy and fertilizer companies, as the deepening credit crisis heightened concern the global economy is poised for a recession. The Standard & Poor's/TSX Composite Index dropped as much as 456.32, or 4.75 percent at midday in Toronto.

Brazilian stocks tumbled for a seventh day and headed for the worst week this decade on concern a global recession will sap demand for raw materials. The Bovespa index slid 2,631.97, or 7.1 percent, 34,448.33 at 12:06 p.m. New York time, paring declines after a 10 percent plunge triggered a trading halt. The index has fallen 21 percent this week, poised for the worst weekly decline since September 1999.

European stocks tumbled, driving the Dow Jones Stoxx 600 Index to its worst week on record, amid concern the deepening credit crisis will send the global economy into recession. The Stoxx 600 slumped 7.6 percent to 204.97 as of 4:30 p.m. in London, extending this week's decline to 22 percent, the most since records began in January 1987.

National benchmark indexes decreased more than 4 percent in 16 of the 17 western European markets that were open. Germany's DAX fell 7.2 percent, while France's CAC 40 retreated 8.8 percent.

U.K. stocks tumbled on Friday extending the FTSE 100’s decline to five-consecutive days during which the senior index lost a fifth of its value. The FTSE 100 finished Friday’s session down 381.7 points, or 8.9 per cent, lower at 3,932.1, undermined by sharp falls in the US and across Asia. Over the week, the benchmark index was down 20.1 per cent and since its last peak in June 2007, the FTSE 100 is 43 per cent lower.

Asian stocks tumbled, driving Japan's Nikkei 225 Stock Average to its biggest weekly decline on record, on concern the deepening credit crisis will push the global economy into a recession.

Japan's Nikkei plunged 9.6 percent to 8,276.43. The gauge slumped 24 percent this week, the steepest decline since 1949, when data began.

Australian stocks plummeted the most since the October 1987 market crash as a credit freeze deepened, worsening the outlook for the global economy. Australia's S&P/ASX 200 Index plunged 360.20 points, or 8.3 percent, to 3,960.70 at the close of trading, extending its weekly decline to 16 percent, the biggest rout in the index's history dating back to 1992.

China's stocks slumped for a fifth day, driving the benchmark index to its worst week on record, amid concern the deepening credit crisis will push the global economy into recession and curb demand for Chinese goods. The CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, declined 88.34, or 4.4 percent, to 1,906.96 at the close.

Indian stocks fell, with the Sensitive Index poised for its worst week in almost 18 years on concern the deepening credit crisis will push the global economy...


TradingEconomics.com, Bloombrg.com
10/10/2008 9:25:32 AM