ARTICLES MODERN

Stocks fell sharply Thursday in Europe and Asia, an withering day after a sell-off on Wall Street sent U.S. stocks to their lowest close in 2003.
“The problem is there is absolutely no silver lining visible,” said Arjuna Mahendran, head of investment strategy in Asia Asia from HSBC Private Bank in Singapore. “Financial crisis may now be in line to the end and now we are in the second stage, where corporate distress is the key issue. A third phase may come early next year, when emerging markets will fight true crisis increase and exports continue to decline. ”

In early trading, the Dow Jones Euro Stoxx 50 index, a barometer of the euro zone blue chips, fell 3.1 percent, while the FTSE 100 index in London was 2.2 percent in down. The CAC 40 in Paris, declined 3.3 percent and the DAX in Frankfurt 2.6 percent. Micex exchange in Moscow trading stopped for an hour after shares fell 7.6 percent.
Investors sought the perceived safety of government bonds the U.S.. For two years, the U.S. Treasury has been marketing to gain 1.08 percent, just above the Federal Reserve’s official 1.0 percent target lending rate between banks overnight. Yield, which moves in the opposite direction of price, earlier fell to nearly 1.05 percent, the lowest ever recorded.

Trading in Standard & Poor’s 500 futures suggested stocks on Wall Street would open down more than 1 percent, after the index fell 6.1 percent to 806.58 Wednesday, its lowest close since March 2003. S & P 500 has given up more than 45 percent of its value in 2008.

U.S. investors sold by the middle of fading hopes for an emergency bailout of the beleaguered U.S. auto industry and the data unexpectedly high showing a decline in consumer prices in the U.S., suggested that deflation could become the latest problem for makers decision.

Asian markets stumbled badly. Tokyo reference NIKKEI 225 stock average finished 6.9 percent lower to take a loss for years to nearly 50 percent. Government data showed Thursday Japanese exports were down 7.7 percent in October from a year earlier, the big decline in December 2001. Drop Japan, contributed to $ 665.8 million trade deficit.

While a decrease was expected - over consumers have been much on reducing expenditure and the yen strength against other currencies makes Japanese goods more expensive overseas - the amount of decline does not bode well for the economy as a whole.

Hang Seng in Hong Kong closed 5.2 percent and the Shanghai Stock Exchange, Composite index fell 1.7 percent.

In Sydney, the S & P / ASX in Sydney fell 4.2 percent. The index was dragged by mining companies giant HP Billiton, which fell 9.1 percent and Rio Tinto, which plunged 13.1 percent. Like other companies of raw materials, which were affected by worries that will damp global demand reduction.

Wednesday, the German chemicals conglomerate BASF said it will reduce overall production by as much as 25 percent because demand from automakers, textile companies and the construction industry dry.

U.S. crude oil futures for December delivery fell 93 cents to $ 52.69 a barrel.

The U.S. dollar was mixed with other major currencies. The euro rose to 1.2509 from 1.2488 late Wednesday in New York, while the British pound fell to 1.4897 U.S. dollars from 1.4950 dollars. The U.S. dollar fell to 95.45 yen from 95.74 and fell to 1.2127 Swiss francs from 1.2139 francs.

Credit markets remained good. So-called Ted spread, the gap between yields on three months in the safe U.S. government bonds and that the rate banks charge each other for loans of the same duration, was unchanged at 2.11 percentage points. Spread is well down from its peak of 4.6 points on October 10, but to improve the credit markets stalled in the last two weeks. Analysts believe a level of 0.5 point to 1.0 point to be normal.