Asia/Europe Follow New York Into Tank...But Futures Up

Japan down 6%, Europe down 2% at this hour. Oil to $47.

Bloomberg: Stocks fell in Europe and Asia for a second day, led by banks and commodity producers, as concern deepened that a prolonged recession will crimp earnings. U.S. index futures gained…

“It will be a very bad recession,” Jane Coffey, head of equities at Royal London Asset Management Ltd. which has about $10.5 billion, said in a Bloomberg Television interview. “At some point next year there will be a great opportunity to get into equities. It is not quite yet.”

The MSCI World Index lost 1 per cent to 822.22 at 9:56 a.m. in London, extending yesterday’s 7 per cent drop. The measure has erased more than half of last week’s record 12 per cent rally, sparked by the U.S. government’s rescue of Citigroup Inc. and China’s efforts to bolster the economy with lower interest rates…

The MSCI Asia Pacific Index decreased 4.2 per cent, with China Petroleum & Chemical Corp. dropping 6.2 per cent.

Standard & Poor’s 500 Index futures added 0.4 per cent. The gauge slipped 8.9 per cent yesterday, as financial shares tumbled a record 17 per cent, amid growing concern consumers’ access to credit is shrinking…

“There is a latent fear in this market that we have another significant rout to come,” said Manus Cranny, a London- based equity market analyst at MF Global. “The cauldron of discontent is really starting to take” a grip, he said.

More than $31 trillion has been wiped off the value of global equities this year as credit-related losses approached $1 trillion in the worst financial crisis since the Great Depression…

Oil fell on signs that the economy in the U.S., the world’s largest energy consumer, is in a more severe slowdown than expected. Crude for January delivery dropped as much as 3.9 per cent to $47.36 a barrel in New York. That’s the lowest since May 20, 2005.

 

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