Posted on 07/12/2011 5:56:20 AM PDT by blam
Wall Street Set To Tumble As Global Markets Roiled
Tuesday July 12, 2011, 7:48 am
By Edward Krudy
NEW YORK (Reuters) - Wall Street was headed for a third day of losses on Tuesday as fears of a systemic crisis in the euro zone grew, sending index futures sharply lower.
In a rerun of the spring selloff in equity markets, U.S. stocks fell sharply in the last session as European officials for the first time refused to rule out default by Greece and investors feared the crisis could overtake Spain and Italy.
"The markets have been gripped by fear, how real it is hard to say," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.
"Is it just the news flow that is causing this? Is it hedge fund managers that are causing this or is there something really more systemic here," he said.
A selloff in Asia was swiftly followed in Europe. The FTSEurofirst 300 (^FTEU3 - News) index of top European fell 1.5 percent, while Japan's Nikkei average (Osaka:^N225 - News) lost 1.4 percent. Wall Street posted its worst day in a month on Monday.
Early trading suggested economically sensitive areas, such as industrials and banking, would lead a broader market decline. Citigroup (NYSE:C - News) fell 1.5 percent to $39.20 while General Electric (NYSE:GE - News) fell 1.2 percent to $18.40.
S&P 500 futures slipped 15.10 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures dipped 111 points, and Nasdaq 100 futures fell 19.75 points.
The S&P 500 found support at its 50 and 100-day moving averages at around the 1,316 level in the last session.
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(Excerpt) Read more at finance.yahoo.com ...
I pulled everything out last Friday.
And that may have been what Timmy was talking about...if America defaults. ‘Course most of us have known that for years...if America ever financially failed the world would stop.
I pulled everything out last Friday.
“Globalization and interdependence = mutually assured economic destruction.... =.=”
You said it perfectly.
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