The Central Banks have lost control, market panic spreads and several exchanges suspend trading.
Yesterday’s rapid sell-off on Wall Street, which dragged the Dow Jones Industrial Average down more than 7 percent in late trading, kicked off a wave of global selling today that some analysts termed a panic selling.
Japan’s Nikkei index plunged nearly 10 percent, as did London’s FTSE index at market open, before making a slight recovery to losses of around 8 percent. In Asia, markets in Hong Kong, South Korea, India Thailand, Indonesia, Australia were among those that suffered major losses.
Shares also fell sharply across Europe, with Germany and France each showing early losses over 7 percent. Russia, Indonesia, Iceland, Austria, and Thailand all halted trading after steep losses.
The New York Times reports the United States and UK appear to be converging on coordinating global action to end the decline. The article says the idea that governments should inject money into banks in return for partial ownership and guarantees of loan repayment will be closely examined when IMF finance ministers meet tomorrow.
The Wall Street Journal reports the U.S. Treasury has begun a process of interviewing financial executives to gauge interest in new programs aimed at injecting capital into banks.