Trading in futures on the Standard & Poor's 500 Index and the Dow Jones Industrial Average was limited to prevent contracts from further declines after drops of more than 6 percent. The U.K.'s FTSE 100 Index sank 7.5 percent and the pound slid the most versus the dollar since 1971 after the economy shrank for the first time since 1992. South Korea's Kospi Index slumped 10 percent as the country's economy grew at the slowest pace in four years.The MSCI World Index lost 3.8 percent to 876.16 at 12:09 p.m. in London, extending this week's retreat to 7.9 percent. Futures on the S&P 500 expiring in December fell 6.6 to 855.2, reaching the "limit down" level.
"The panic levels are now quite unseen," said Christian Gattiker, Zurich-based head of equity research at Bank Julius Baer & Co. which manages about $307.6 billion globally. "It's difficult to have any words for this situation right now."
Bloomberg | Global Stocks, U.S. Futures Fall, Led by Carmakers; Yen Rallies
Yup, that's right. After-hours trading stopped on the NYSE to prevent futures dropping more than six percent. The Nikkei's a ghastly sight and markets around the globe are being trashed.
Things could get ugly.
Locally, our front pages cover the future of the Bok emblem or the ANC metamorphosing into Zanu-PF. I've a feeling few realize just how serious this crunch and its implications are — even should the wheels not fall off and burn.
Hold on to whatever you can and enjoy the ride.
October — long regarded as a bleak month for stocks because of the crashes in 1929 and 1987 — is poised to set a new monthly standard for weakness. The Dow Jones Industrial Average, as of trading early Friday afternoon, was down 23% for the month, a worse showing than those prior Octobers.
CNN | Stock Crash Nears Historic Milestone
