Stocks across Europe and Asia fell sharply on Monday amid fears of a continuing slide in the American economy. Financial managers are looking for safe havens for investments. The fear is a slumping American economy will pull the rest of the world down with it.
It has been the biggest one day plunge since 9/11. Here is a report from the Financial Times.
Tumbling Asian shares led European stock markets into their biggest one-day fall since 9/11 as the prospect of a US recession and further fall-out from credit market turmoil prompted near panic among investors, who rushed to the safety of government bonds. About €339bn ($490bn) was wiped off the market value of Europe's FTSE Eurofirst 300 index and £76bn ($148bn) from the FTSE 100 index in London, which suffered its biggest points slide since it was formed in 1983.
Fear of a US recession is a part of the picture. Credit Suisse says, "What we are seeing now has the hallmarks of both a financial shock and the beginning of a [US] recession, or at least of growth grinding to a halt."
Everyone is watching what will happen tomorrow when Wall Street reopens after the Martin Luther King holiday. It is expected that stocks will decline through the week. No one sees a bottom at this time.
Darris McNeely works at the United Church of God home office in Cincinnati, Ohio. He and his wife, Debbie, have served in the ministry for more than 43 years. They have two sons, who are both married, and four grandchildren. Darris is the Associate Media Producer for the Church. He also is a resident faculty member at the Ambassador Bible Center teaching Acts, Fundamentals of Belief and World News and Prophecy. He enjoys hunting, travel and reading and spending time with his grandchildren.
