GLOBAL MARKETS SWOON DRASTICALLY ON FEARS OF U.S. RECESSION, WALL STREET LOOKS TO OPEN TUESDAY WITH A MASSIVE THUD!
The concern is easily visible on a German DAX trader's face Monday as world stock markets plummeted on fears that a possible recession in the United States could carry over to the rest of the world. The DAX in Frankfurt itself dived over 7 percent in Monday trading.
U.S. stock markets were closed Monday in honor of the Martin Luther King, Jr. national holiday, and that appears to be a blessing from God.
Stock markets in virtually every major foreign country dived in levels not seen for most of them since immediately after September 11, 2001, as fears swarmed over the direction of the U.S. economy and how that would impact the rest of the world. Stock markets in Asia, Europe, and other areas of the Americas dived anywhere from 5 to 7 percent. Close to home, Canada's TSE-300 barometer plunged by nearly 5 percent.
Tuesday looked even more grim. India's main stock index dived 9 percent, causing trading to be temporally suspended. Japan's Nikkei Index just closed a little while ago, having finished down nearly 6 percent. The ASX in Australia plummeted by nearly 7 percent. In China, the Shanghai Index dived another 7 percent. Oil and gold futures continued their downward movement. The odd thing is, gold usually benefits from uncertainty in stock markets.
As I am writing, European markets are beginning their Tuesday sessions, with more losses piling up on the ones from the day before. In London, the FTSE-100 index was recently down a more modest 3.4 percent, bringing its two-day loss total to nearly 9 percent. In Paris, the CAC-40 barometer was diving 4.3 percent, and is now down over 11 percent in two days.. Frankfurt's DAX-30 was lower by 4.6 percent, on top of yesterday's 7.2 percent slam downward.
Attention will now be widely focused on U.S. stock markets in just a few hours when they open at 9:30 AM EST. Futures for the Dow Jones Industrial Average have recently been down as much as 650 points, which would reflect a nearly 6 percent drop. We'll be watching, and you can too with the two following links:
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