European markets extend losses

LONDON – European stock markets were sharply lower yesterday following losses in Asia and an expected retreat on Wall Street amid spreading pessimism over corporate earnings around the world.

Britain’s FTSE 100 index of leading shares was down 177.13 points, or 4.2 per cent, at 4 052.60, while Germany’s DAX was down 189.29 points, or 4.0 per cent, at 4 595.12. The CAC-40 in France, Europe’s best-performing index on Tuesday, was 146.45 points, or 4.2 per cent, lower at 3,328.95.Europe’s losses echoed those in Asia.Japan’s Nikkei 225 stock average fell for the first time in three days, dropping 631.56 points, or 6.79 per cent, to 8 674.69, while Hong Kong’s Hang Seng sank 5.2 per cent and South Korea’s main index shed 5.1 percent.United States stocks were also expected to drop again when Wall Street opens.Dow Jones industrial average futures fell 126, or 1.4 per cent, to 8 909.On Tuesday, the Dow retreated 231 points after a host of companies such as chemical manufacturer DuPont Co., Sun Microsystems and Caterpillar Inc., downplayed their prospects for the coming months.”Wall Street tumbled before the close last night and then with Yahoo! posting some poor Q3 numbers, this is certainly the sort of news that is setting the mood right now,” said Matt Buckland, a dealer at CMC Markets.Among the US companies reporting Wednesday are Amazon.com Inc., AT&T Inc., Boeing Co., McDonald’s Corp.and Merck & Co.Fears about the economic outlook have become the markets’ primary concern as worries over the banking system have been assuaged, for now at least, by concerted government attempts to shore up banks, as well as massive liquidity boosts from the world’s leading central banks.Commodity stocks have been particularly hit in Europe.Mining company BHP Billiton PLC was down more than 9 per cent after it warned of uncertain economic conditions in China, the main driver of global economic growth in recent years.Another major mining firm, Anglo American PLC, was also down over 6 per cent following BHP’s warning.Nampa-APThe CAC-40 in France, Europe’s best-performing index on Tuesday, was 146.45 points, or 4.2 per cent, lower at 3,328.95.Europe’s losses echoed those in Asia.Japan’s Nikkei 225 stock average fell for the first time in three days, dropping 631.56 points, or 6.79 per cent, to 8 674.69, while Hong Kong’s Hang Seng sank 5.2 per cent and South Korea’s main index shed 5.1 percent.United States stocks were also expected to drop again when Wall Street opens.Dow Jones industrial average futures fell 126, or 1.4 per cent, to 8 909.On Tuesday, the Dow retreated 231 points after a host of companies such as chemical manufacturer DuPont Co., Sun Microsystems and Caterpillar Inc., downplayed their prospects for the coming months.”Wall Street tumbled before the close last night and then with Yahoo! posting some poor Q3 numbers, this is certainly the sort of news that is setting the mood right now,” said Matt Buckland, a dealer at CMC Markets.Among the US companies reporting Wednesday are Amazon.com Inc., AT&T Inc., Boeing Co., McDonald’s Corp.and Merck & Co.Fears about the economic outlook have become the markets’ primary concern as worries over the banking system have been assuaged, for now at least, by concerted government attempts to shore up banks, as well as massive liquidity boosts from the world’s leading central banks.Commodity stocks have been particularly hit in Europe.Mining company BHP Billiton PLC was down more than 9 per cent after it warned of uncertain economic conditions in China, the main driver of global economic growth in recent years.Another major mining firm, Anglo American PLC, was also down over 6 per cent following BHP’s warning.Nampa-AP