The state of the U.S. economy continues to weigh heavily on the world markets. That along with concerns of a global economic slowdown sent overseas markets plunging today.
South Korea's market suffered its second-largest decline of the year with a 3.9% percent loss. "Some stocks were heavily sold due to concern about a further fall. The rumor on the bankruptcy of a European hedge fund particularly weighed on the market today" said Lee Young-Gon with Hanwah Securities.
Hong Kong's blue chip Heng Seng Index finished the down 4% percent. Significant losses were also recorded in India and Taiwan.
Market Analyst Francis Lun said, "I don't think we will see further catastrophic loss in another major bank. I think already the sub-prime mortgage is already catastrophic enough, not including another one."
Prior to Wall Street's open this morning, stock index futures were prepared for opening losses. The sub-prime mortgage losses and credit market concerns continue to worry investors.
The Fed will meet on Tuesday and it is expected that there may be yet another round of interest-rate cuts.
This week we'll also learn of the economy's fourth-quarter results and major companies are reporting their yearend results. Some analysts are at least are expecting these reports will bring encouraging news.
