LONDON: Global stock markets fell hard today, with Tokyo losing nearly seven per cent and European indices deep in the red after sharp overnight losses on Wall Street and amid a fresh wave of major job cuts.
“Equities look set to continue their slide after big falls on Wall Street were followed by a broad based sell-off across the Asian markets,” said CMC Markets dealer Matt Buckland.
Isuzu Motors today said it would cut 1,400 jobs and slash domestic production by 10 per cent, the latest in a slew of layoffs by Japanese automakers to cope with a global economic slowdown.
French carmaker PSA Peugeot Citroen, meanwhile, announced plans to slash 2,700 jobs.
In London, the British maker of plane engines Rolls-Royce said it anticipated cutting between 1,500 and 2,000 jobs worldwide in 2009, or up to five per cent of its workforce.
Multinationals are announcing major job-cutting programmes on an almost daily basis as leading industrialised countries fall into recession and as the financial sector attempts a massive recovery after being hit by a credit crunch.
US bank Citigroup had on Monday said it was slashing a near-record 50,000 jobs worldwide.
Meanwhile, the drive for an additional US$25 billion bailout for ailing American automakers, backed by Democrats in the US Congress, stalled yesterday as Republican lawmakers insisted the sector use funds from a previous bill.
Executives from General Motors, Ford and Chrysler have begged Congress for the multibillion dollar loans and warned the industry faces a “catastrophic collapse” if the lawmakers do not come to the rescue.
In early European stock market trading today, London showed a loss of 2.08 per cent as it fell beneath 4,000 points. Frankfurt shed 3.40 per cent and Paris dropped 3.35 per cent to below 3,000 points.
In Asia, Tokyo closed down a huge 6.89 per cent, Hong Kong shed 4.0 per cent, Seoul dived 6.7 per cent and Sydney slid 4.2 per cent.
Elsewhere, Taiwan closed down 4.53 per cent, Australia shed 4.2 per cent, New Zealand was 2.2 per cent lower and the Philippines dropped 3.45 per cent.
“What I can see is that the distressed selling is continuing and at a greater rate than it has in the last three or four weeks,” said Bell Potter senior adviser Stuart Smith.
“It’s forced selling. There can be no other reason. The market’s trying to find an absolute floor.”
Gulf stock markets traded mixed today as Kuwaiti shares continued their recovery on the back of a government rescue plan.
The Kuwait Stock Exchange, the second largest bourse in the region, was up 0.6 per cent nearing the close, while Dubai fell 3.6 per cent. - Agencies
EMAIL
PRINT
CURRENCY CONVERTER
