Thursday, Nov 6, 2008
European stocks slumped in early trading Thursday, taking their cues from Wall Street and Asian-Pacific markets.
London, Paris and Frankfurt were all off about 3 percent in the first 30 minutes.
Most Asian and Pacific markets were sharply lower on Thursday.
The Nikkei in Tokyo closed down 6.5 percent, while Australia’s All Ordinaries slipped more than 4 percent.
In Seoul, the KOSPI finished the day 7.6 percent lower. The Taiwan Weighted index fell 5.7 percent. Hong Kong’s Hang Seng closed down 7.1 percent.
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The losses were more modest in Singapore, where the Straits Times Index was down more than 4 percent and the BSE SENSEX in Mumbai fell 4.2 percent by midday.
The selloff followed Wednesday’s rally across Asia as markets returned to economic realities following historic elections in the United States that saw Barack Obama elected as the first African-American U.S. president.
On Wall Street Wednesday, the Dow Jones industrials fell 486 points, or 5 percent. Similar percentage losses were posted by the tech-heavy NASDAQ and broad-based Standard and Poor’s 500.
U.S. futures, which offer an indication of how markets may open when trading begins in New York on Thursday, were lower.