U.S. Stocks Pointing Lower
Global markets moved sharply lower this morning, on mounting concerns about a global recession to which no corner of the globe seems to be immune. Yesterday and today, it's news from the Middle East that is troubling markets. In Kuwait this morning, customers lined up outside the country's Gulf Bank to pull money out of their accounts. The Kuwait central government said Sunday it would guarantee bank deposits, after a client defaulted on $750 million in derivatives contracts.
This morning, Japan's Nikkei hit a 26-year low as investors continued to dump shares out of concern for the economy and the country's export-dependent companies. Hong Kong's Hang Seng declined a whopping 12.7 percent. Shares in Europe were also lower, with London's FTSE down more than 4.8 percent, France's CAC down 6.3 percent and the DJ Stoxx index down 5.4 percent.
Oil is down to $63 a barrel.
In the U.S., stock futures are also looking grim, pointing down about 200 points at the opening bell so far. Later this morning, we will be watching for new data out about the sales of new homes. The markets will also be looking forward to Wednesday, when the Fed will make a decision about lowering interest rates.
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