Will a coordinated interest rate cut this morning turn the tide? Before this morning's rate cut announcement, it was getting really ugly.
In Japan, the Nikkei closed down nearly 9.4 percent, the biggest drop since Black Monday back in 1987. Investors remain concerned about the economy, and in particular about exporters such as automaker Toyota, which saw another 11 percent drop in its share price today after it said its profit may decline by as much as 40 percent.
In Europe, the British government announced that it will spend $88 billion to prop up struggling British banks. Still, the UK's FTSE was down 3.7 percent before the rate cut announcement and other markets in Europe were down similarly.
We'll watch the opening bell here in the United States; earlier today the futures looked like they were headed south by a few hundred points, but now it looks like we're headed into positive territory. Despite talk of an interest rate cut by Fed chairman Ben Bernanke yesterday and the Fed's announcement that it would buy commercial paper to help banks and ordinary businesses, the Dow closed down 5 percent yesterday.
Check back here later this morning for continuing live coverage and an interview with CNBC's Erin Burnett.
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Posted by: Anonymous | October 8, 2008 10:01 AM
Posted by: Anonymous | October 8, 2008 10:48 AM
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