Finance crisis inflicts more pain as recession fears grow
The global financial crisis inflicted more pain on a wide range of corporate sectors, prompting heavy losses in stock markets, while the IMF readied a rescue of some 200 billion dollars for debt-laden countries.
By Agencies |
WASHINGTON: The global financial crisis inflicted more pain on a wide range of corporate sectors, prompting heavy losses in stock markets, while the IMF readied a rescue of some 200 billion dollars for debt-laden countries.
Amid grim financial news from around the world, stocks saw another tumultuous day yesterday, starting with a horrific 9.6 per cent slump in Tokyo shares that spilled over to Europe, where London's FTSE plunged 5.0 per cent.
"The best word to describe what's going on right now is panic," said Credit Suisse strategist Satoru Ogasawara.
Wall Street followed other exchanges downwards as a wave of panic selling and a meltdown in share prices swept around the world.
The Dow Jones Industrial Average slumped 312.30 points (3.59 per cent) to close at 8,378.95, in a volatile session that saw the blue-chip index down as much as 500 points.
The market action capped a week with a drop of more than five per cent for the US blue-chip index.
The IMF said it had tentatively agreed to the loan and announced it had set aside more cash to rescue stricken nations.
"The IMF has more than 200 billion dollars of loanable funds and can draw on additional resources through two standing borrowing arrangements with groups of IMF member countries," the institution said on its website.
French auto giants PSA Peugeot-Citroen and Renault ordered huge production cuts, while Japan's electronics giant Sony Corp. and Europe's biggest airline Air France-KLM issued profits warnings.
Amid grim financial news from around the world, stocks saw another tumultuous day yesterday, starting with a horrific 9.6 per cent slump in Tokyo shares that spilled over to Europe, where London's FTSE plunged 5.0 per cent.
"The best word to describe what's going on right now is panic," said Credit Suisse strategist Satoru Ogasawara.
Wall Street followed other exchanges downwards as a wave of panic selling and a meltdown in share prices swept around the world.
The Dow Jones Industrial Average slumped 312.30 points (3.59 per cent) to close at 8,378.95, in a volatile session that saw the blue-chip index down as much as 500 points.
The market action capped a week with a drop of more than five per cent for the US blue-chip index.
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Iceland's government said it had asked for two billion dollars (1.58 billion euros) of support from the International Monetary Fund, the first Western country to do so since 1976, to help emerge from a collapse of its banking sector. The IMF said it had tentatively agreed to the loan and announced it had set aside more cash to rescue stricken nations.
"The IMF has more than 200 billion dollars of loanable funds and can draw on additional resources through two standing borrowing arrangements with groups of IMF member countries," the institution said on its website.
French auto giants PSA Peugeot-Citroen and Renault ordered huge production cuts, while Japan's electronics giant Sony Corp. and Europe's biggest airline Air France-KLM issued profits warnings.
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