1/22/08 UPDATE: As a result of the collapsing international markets and recession fears, the US Federal Reserve cut interest rates today by three quarters of a percentage point in an emergency session.
With the [tag]US markets[/tag] closed on Monday, stock markets around the globe were busy losing an average of 5% of their total value. If traders in the US thought that might be an impetus for a selloff on Tuesday, it only got worse as markets in Asia opened today (Tuesday).
According to Yahoo Finance, “Japan’s Nikkei 225 index, the benchmark for Asia’s biggest bourse, skidded 4.4 percent in morning trading to 12,738.31 points, after dropping 3.9 percent Monday. Hong Kong’s Hang Seng index was down 5.2 percent after plunging 5.5 percent the day before.”
Here’s a preview of what we’ll likely see across Europe and the rest of the world again tomorrow (snapshot from 12:20PM EST):
I’d like to see how the White House tries to spin this!