Citigroup Worries Hit World Markets

Asian, European markets down, US futures off on news of $11B writedown

By Lucas Laursen, Newser Staff

Posted Nov 5, 2007 6:56 AM CST

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Citigroup Worries Hit World Markets — A pedestrian walks past a digital display updating Nikkei 225 index outside a securities company office in Tokyo, Friday morning, Nov. 2, 2007. The Japanese benchmark stock index plunged over 300 points in early trading Friday, following large losses in New York overnight because of concerns over a... (Associated Press)

Asian and European stock indexes declined today, and US futures dropped sharply as news of Citigroup's projected $11 billion writedown triggered fears that the subprime mortgage crisis will continue to roil markets. Japan’s Nikkei stock index closed 1.5% down, a 7-week low, and Hong Kong's Hang Seng index fell 5.01%, AP reports. UK, German, and French indexes were all off in midday trading.

The Journal reports S&P 500 futures down 11.7 points, Nasdaq 100 futures 15.5 points, and the Dow industrial futures 103 points. "The journey through the financial turmoil has gone back to resembling a tunnel of fear, with new scary monsters jumping out of the dark at every corner," Reuters quotes one analyst observing. (More Nikkei 225 Stock Average stories.)

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