World Stocks Tank On Detroit Bailout Collapse

This will likely further force the White House’s hand.

AP: The FTSE 100 of leading British shares was down 127.87 points, or 2.9 per cent, at 4,260.82, while Germany’s DAX fell 185.22 points, or 3.9 per cent, to 4,581.98. The CAC-40 in France fell 130.48 points, or 4.0 per cent, to 3,175.65.

Earlier, Asian markets tumbled, with Japan’s Nikkei 225 stock average down 484.68 points, or 5.6 per cent, to 8,235.87. Hong Kong’s Hang Seng index slid 5.5 per cent to 14,758.39.

U.S. stock index futures pointed to a big sell-off later on Wall Street. The Dow Jones industrial average was projected to drop 259 points, or 3.0 per cent, to 8,311, while the broader Standard & Poor’s 500 index was forecast to fall 32.90 points, or 3.8 per cent, to 841.60…

Hopes for the U.S. auto industry now appear to rest with President George W. Bush agreeing to tap the $700 billion Wall Street bailout fund, or TARP, to aid the carmakers. General Motors Corp. and Chrysler LLC have said they could be weeks from collapse. Ford Motor Co. says it does not need federal help now, but its survival is far from certain…

The dollar fell to a low of 88.16 yen, its lowest level since Aug. 2, 1995 — before it recovered to trade above 90 yen…

Elsewhere, oil prices retreated to below $46 a barrel Friday in Asia after a strong rally overnight, but traders said expectations of a sharp production cut by the OPEC cartel would support the market. Light, sweet crude for January delivery fell $1.27 to $46.71 a barrel in electronic trading on the New York Mercantile Exchange.

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