Now and Yen
Stock markets around the world sold off on fears that a U.S. recession would drag down the global economy. The selling began in Tokyo on Monday, when the Nikkei 225 index fell 3.9 percent. On Tuesday, the Nikkei fell another 5.7 percent. The index is now below 13,000 for the first time since September 2005.
When It Rains...
After Asia sold off on Monday, Europe followed. A screen in west London tracked the market's fall on Monday. It was the biggest one-day point decline ever in London.
European Angst
Many investors had believed that economies in Europe and Asia were not dependent on the U.S. economy and could withstand a recession. Few investors believed that on Monday, when stocks in Germany, a major exporter, fell 7 percent.
Think Global, Act Local
Stocks in China tumbled on Monday and Tuesday, driven by worries over the U.S. economy. But markets were also rattled by reports that the Bank of China may have exposure to U.S. mortgages. (The bank has denied it.) Corn prices, however, have stabilized, thanks to government controls.
Fast and Furious in India
In Mumbai, the Sensex index plunged nearly 10 percent within just minutes of the market opening, forcing a one-hour halt in trading. It later recovered to close down 5 percent.
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