Monday, Oct 27, 2008
Markets around the world remained volatile as investors worried that a flurry of central bank moves this week would not be enough to stave off a global recession.
US stocks bounced back and forth between positive and negative territory as Japanese stocks tumbled to 26-year lows and European markets fell heavily but then pared their losses in chaotic trade.
Oil prices continued to slump on expectations that the economic slowdown will slash demand.
Little that officials said could convince panicky investors that governments can stem the fast-spreading crisis that is menacing financial markets, economic growth and company earnings.
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Meanwhile, U.S. banks lined up for government cash, the Group of Seven expressed concern about the soaring Japanese yen, and countries in Asia and Europe took emergency actions to shore up their financial positions.
The credit crisis, which began with failing U.S. mortgages, has mushroomed into a worldwide rout as investors sell stocks and commodities, shun risky emerging markets and seek out only the safest of government bonds and currencies.
Still, there were some promising signs Monday. Government efforts to revive credit markets were beginning to pay off as borrowing costs eased, and major U.S. stock indexes were not as far down as some had feared.
This article was posted: Monday, October 27, 2008 at 11:10 am