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World Markets Tumble

Biggest drop in over 20 years, Brit bailout fails to stop FTSE dive

By Rob Quinn, Newser Staff

Posted Oct 8, 2008 2:40 AM CDT

(Newser) – Fears of a global recession sent markets plummeting around the world today, Bloomberg reports. Japan's Nikkei index nosedived 9.4%—its biggest fall since the stock market crash of 1987. Indonesia and Russia halted trading after their benchmark index dove 10%. Of 100 companies listed in Britain's FTSE 99 fell in early trading as news of a dramatic bank bailout failed to reassure investors.

A huge sell-off sparked by a spreading credit crisis has now wiped out over $5 trillion in Asian markets in under a week. "There's nowhere to hide as far as investing is concerned," observed a Malaysian asset manager. The "panic selling" continues, warned a Korean analyst. "The plans for propping up the markets aren't having an effect.''

[Images (4)]

[Quotes (1)]

A pedestrian walks past an electric stock market board in Tokyo today. (AP Photo/Katsumi Kasahara)

A Saudi trader reacts as he looks at the stock market monitor in Riyadh, Saudi Arabia, today. (AP Photo/Hassan Ammar)

A stunned trader steps out of his booth as he takes a break during morning trading at the Philippine Stock Exchange in Manila, today. (AP Photo/Aaron Favila)

A man walks past a display showing stock prices at a brokerage firm in Hong Kong today. (AP Photo/Vincent Yu)

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It is capitulation. It is across-the-board fear that economic conditions will get seriously worse. - Hans Kunnen, head of investment market research at Colonial First State Global Management.

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