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World Markets Slide Again
By Robert Barr, Associated Press Writer
Monday, Sept. 10, 2001; 11:47 a.m. EDT
LONDON –– World stock markets skidded lower again Monday, with Tokyo's main index hitting a 17-year low. London's key index dipped below 5,000 for the first time in nearly three years, before staging a late recovery.
European markets staged a modest recovery in the afternoon, after key indexes fell 3 percentage points or more in earlier trading. The European rebound came as prices stabilized on the New York Stock Exchange. In late morning trading, the Dow Jones industrial average was up 35.36 at 9,641.21. The blue chip index recovered from an early drop of more than 100 points.
Tokyo's benchmark 225-issue Nikkei Stock Average closed down 321.10 points, or 3.05 percent, to 10,195.69. It was the lowest finish for the index since Aug. 2, 1984, when it closed at 10,086.87.
In late afternoon trading in Europe, the Financial Times-Stock Exchange 100-share index was down 1.13 percent to 5,012.80, a strong rebound after being nearly 3 percentage points down earlier in the session. The index last closed below 5,000 on Oct. 13, 1998.
In Frankfurt, the Xetra DAX index was down 0.88 percent to 4,689.23, and the CAC40 index was down 1.03 percent to 4,368.27 in Paris trading. Both had been down more than 3 percentage points earlier in the day. The MIBTel 30 index in Milan was down 1.21 percent 31,518.00, and the Swiss Market Index was off 2.02 percent at 6,128.90.
David Sneddon, a technical analyst with Credit Suisse-First Boston, said 4,900 is now the key level for the London market. "We should see some stabilization and consolidation at this level in the near term," he said.
The world's markets have been depressed by the economic slowdown in the United States, and more bad news from Washington on Friday continued the downward pressure. A Labor Department report said U.S. unemployment soared to 4.9 percent in August – its highest level in nearly four years – and businesses slashed 113,000 jobs. The figures reinforced fears of a protracted slump.
Yasuo Fukuda, chief spokesman for the Japanese government, said the Tokyo market's decline was hurt by weak stock markets overseas and that current stock prices did not reflect Japan's economic fundamentals. "Personally, I doubt if it reflects Japan's economic situation," Fukuda told a regular news conference Monday. "We have to watch the situation calmly," he said.
The broader Tokyo Stock Price Index of all issues listed on the first section finished down 24.85 points, or 2.30 percent, to 1,055.98.
© Copyright 2001 The Associated Press
-- Swissrose (firstname.lastname@example.org), September 10, 2001
This is amazing. I've been watching the Nikkei for a long time. Since its top of 38,000 in 1989 it has now fallen to 10,000. Than is an enormous drop, over twelve years time. Now, drops of 3% in one day have been common lately. And yet, the economy keeps stumbling along, technically, at least, hanging together. You can only wonder how much longer this can possibly go on before the Japanese economy finally falls out of bed.
-- Wellesey (email@example.com), September 10, 2001.