Further evidence of a deep contraction in the U.S. economy pushed oil
prices down on Friday while global equity markets fell on the latest U.S.
government move to save ailing Citigroup, knocking the S&P 500 and Dow to
12
year lows.
The U.S. government said it could take as much as a 36 percent state in Citigroup's common stock, leading the U.S. dollar to rise broadly as investors worried that other American banks might also need a similar show of support.
U.S. Treasuries erased early gains and long-dated bonds turned lower after a brief paring of stock losses led investors to fear a rebounding equity markets could take money away from looming massive sales of government debt.
The broad market Standard & Poor's 500 Index fell to its lowest close since December 1996, increasing the depth of a bear market that is now off 53 percent from its peak in 2007.
The Dow Jones industrial average fell to its lowest close since May 1997.
To read more, double-click on the square brackets below:
MARKET REPORTS: > GLOBAL MARKETS-US stocks slide to 12 year lows, oil down too > MONEY MARKETS-Dollar rates at 6 week high in Europe > EMERGING MARKETS-Bailout boosts Eastern Europe > COMMODITIES-US GDP data chokes off oil, copper rally
MAIN ECONOMIC AND FINANCIAL NEWS DRIVING GLOBAL MARKETS > Citigroup gets new rescue, US may own 36 pct > US economy shrank at 6.2 percent annual rate in Q4 > GE cutting dividend payout 68 pct > US braces for more bank busts, ups insurance fee > Colombia central bank cuts interest rates by 100 bps > Lloyds reports 10 bln sterling loss, in talks with UK > Eurozone jobless up, inflation at decade low > Lenders commit 25 bln euro to Eastern Europe > Japan factory output slides, new jobs dry up > China says economy on track but worse may lie ahead > Highlights of Obama''s first budget > Politics clouds CDS dealers push for Fed regulation > Strong bid for US five-year notes reassures investors > Bets rise on Mexico debt downgrade > Despite pledges, protectionist threat won't go away > China, decrying protectionism, is itself vulnerable
FACTBOXES: > Text of US Treasury announcement on Citigroup > White House U.S. budget forecasts > Obama lays out domestic economic agenda > Central banks turn to new measures to help economies > Where has all the US bailout money gone - > Latin American refinancing needs, options > How the financial crisis is affecting Eastern Europe > IMF emergency loan programmes in past six months > Central banks turn to new measures to help economy > Which big economies are in recession - > US's Geithner announces plan for financial stability
Keywords: CREDITCRISIS/TAKEALOOK (New York Treasury Desk +1-646-223-6300) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
12
year lows.
The U.S. government said it could take as much as a 36 percent state in Citigroup's common stock, leading the U.S. dollar to rise broadly as investors worried that other American banks might also need a similar show of support.
U.S. Treasuries erased early gains and long-dated bonds turned lower after a brief paring of stock losses led investors to fear a rebounding equity markets could take money away from looming massive sales of government debt.
The broad market Standard & Poor's 500 Index fell to its lowest close since December 1996, increasing the depth of a bear market that is now off 53 percent from its peak in 2007.
The Dow Jones industrial average fell to its lowest close since May 1997.
To read more, double-click on the square brackets below:
MARKET REPORTS: > GLOBAL MARKETS-US stocks slide to 12 year lows, oil down too > MONEY MARKETS-Dollar rates at 6 week high in Europe > EMERGING MARKETS-Bailout boosts Eastern Europe > COMMODITIES-US GDP data chokes off oil, copper rally
MAIN ECONOMIC AND FINANCIAL NEWS DRIVING GLOBAL MARKETS > Citigroup gets new rescue, US may own 36 pct > US economy shrank at 6.2 percent annual rate in Q4 > GE cutting dividend payout 68 pct > US braces for more bank busts, ups insurance fee > Colombia central bank cuts interest rates by 100 bps > Lloyds reports 10 bln sterling loss, in talks with UK > Eurozone jobless up, inflation at decade low > Lenders commit 25 bln euro to Eastern Europe > Japan factory output slides, new jobs dry up > China says economy on track but worse may lie ahead > Highlights of Obama''s first budget > Politics clouds CDS dealers push for Fed regulation > Strong bid for US five-year notes reassures investors > Bets rise on Mexico debt downgrade > Despite pledges, protectionist threat won't go away > China, decrying protectionism, is itself vulnerable
FACTBOXES: > Text of US Treasury announcement on Citigroup > White House U.S. budget forecasts > Obama lays out domestic economic agenda > Central banks turn to new measures to help economies > Where has all the US bailout money gone - > Latin American refinancing needs, options > How the financial crisis is affecting Eastern Europe > IMF emergency loan programmes in past six months > Central banks turn to new measures to help economy > Which big economies are in recession - > US's Geithner announces plan for financial stability
Keywords: CREDITCRISIS/TAKEALOOK (New York Treasury Desk +1-646-223-6300) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.