Richard Tafoya
Jan 21st, 2008, 02:20 PM
LA Times:
http://www.latimes.com/business/la-fi-markets22jan22,0,4231134.story?coll=la-home-center
In one of the worst market routs since the 2001 terrorist attacks, stocks around the world plummeted overnight on worries that the U.S. housing crisis and a softening economy could trigger a global economic slowdown.
Stocks plunged 5.5% in Great Britain, 6.8% in France and 7.2% in Germany. Asia was also pummeled, as stocks fell 5.5% in Hong Kong and 7.4% in India.
The sell-off reflects deepening fears that a potential U.S. recession could whip around the globe and impinge on other countries that sell their products in U.S. markets.
U.S. stocks had one of their worst weeks in years last week due to a mix of economic worries and concerns about the financial health of major investment banks and bond insurers. The Standard & Poor's 500 index sank 5.4%, its worst drop since July 2002.
U.S. markets are closed today in observance of the Martin Luther King Jr. holiday.
A prolonged sell-off in international markets would take a sharp toll on individual U.S. investors, who have directed increasing amounts of their portfolios to foreign-stock mutual funds in recent years on the theory that growth in China and elsewhere could withstand economic weakening in the United States.
For most of the last year, foreign funds have notched solid gains, thanks in part to the weakening of the U.S. dollar.
http://www.latimes.com/business/la-fi-markets22jan22,0,4231134.story?coll=la-home-center
In one of the worst market routs since the 2001 terrorist attacks, stocks around the world plummeted overnight on worries that the U.S. housing crisis and a softening economy could trigger a global economic slowdown.
Stocks plunged 5.5% in Great Britain, 6.8% in France and 7.2% in Germany. Asia was also pummeled, as stocks fell 5.5% in Hong Kong and 7.4% in India.
The sell-off reflects deepening fears that a potential U.S. recession could whip around the globe and impinge on other countries that sell their products in U.S. markets.
U.S. stocks had one of their worst weeks in years last week due to a mix of economic worries and concerns about the financial health of major investment banks and bond insurers. The Standard & Poor's 500 index sank 5.4%, its worst drop since July 2002.
U.S. markets are closed today in observance of the Martin Luther King Jr. holiday.
A prolonged sell-off in international markets would take a sharp toll on individual U.S. investors, who have directed increasing amounts of their portfolios to foreign-stock mutual funds in recent years on the theory that growth in China and elsewhere could withstand economic weakening in the United States.
For most of the last year, foreign funds have notched solid gains, thanks in part to the weakening of the U.S. dollar.