World Markets Crushed, Japan Down 10%

As Paul Kedrosky said a few days ago, we’ve run out of adjectives.  Latest carnage here.

AP:  World stock markets tumbled Friday on growing alarm that a global recession will ravage corporate profits.

In Japan, shares of Sony sank more than 14 per cent after it slashed its earnings forecast for the fiscal year. In Germany, Daimler’s stock dropped 11.4 per cent in morning trading after it reported lower third-quarter earnings and abandoned its 2008 profit and revenue guidance.

The U.S. dollar, meanwhile, plunged below 93 yen, a 13-year low, as traders reacted to dismal U.S. jobs data that spurred speculation the Federal Reserve might cut interest rates…

Sony’s news “was yet another indicator that the global economy is really slowing,” said Yutaka Miura, senior strategist at Shinko Securities in Tokyo…

Japan’s Nikkei 225 stock average slid 9.6 per cent to 7,649, its first close below 8,000 since May 2003. For the week, the index lost 12 per cent.

European markets opened sharply lower as well, with Germany’s DAX falling more than 5 per cent in early trading. Britain’s FTSE-100 was down 3.6 per cent.

U.S. stock index futures were down sharply. Both Dow Jones industrial average and Standard & Poor’s 500 index futures were down more than 6 per cent. On Thursday, the Dow rose 2 per cent to 8,691.25.

In currency trading, the dollar fell as low as 92.76 yen, the lowest since August 1995. The euro fell to US$1.2556 from US$1.2895.

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