U.S. Stocks Sink on European Bank Worries
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U.S. stocks are taking their cues from Europe again and are lower across the board Thursday. Dow futures are currently lower by 200 points and S&P 500 futures are lower by 25.
Worries about the banks have stocks in Europe in the doldrums as investors worry about a double-dip recession and a spiraling of the credit crisis there. The FTSE is down 2.3 percent and the DAX is down 3.7 percent.
Adding fuel to the fire was a front page Wall Street Journal story suggesting the U.S. Federal Reserve is very concerned about European banks which operate in the U.S. The Fed had recent meetings with officials from the European banks to discuss if the region had ample liquidity. The Fed seeks to avoid a repeat of 2008, which this time could lead to a spilling over to the U.S. banking sector.
Earlier this morning, Morgan Stanley lowered its global growth forecast and said the U.S. and Europe are "dangerously close to recession." The firm's 2011 forecast for global growth fell from 4.2 percent to 3.9 percent. The 2012 estimate was cut from 4.5 percent to 3.8 percent.
Gold again crossed above the $1,800 per ounce level on the global worries. Gold last traded at $1,811.40, up $19.20.
Worries about the banks have stocks in Europe in the doldrums as investors worry about a double-dip recession and a spiraling of the credit crisis there. The FTSE is down 2.3 percent and the DAX is down 3.7 percent.
Adding fuel to the fire was a front page Wall Street Journal story suggesting the U.S. Federal Reserve is very concerned about European banks which operate in the U.S. The Fed had recent meetings with officials from the European banks to discuss if the region had ample liquidity. The Fed seeks to avoid a repeat of 2008, which this time could lead to a spilling over to the U.S. banking sector.
Earlier this morning, Morgan Stanley lowered its global growth forecast and said the U.S. and Europe are "dangerously close to recession." The firm's 2011 forecast for global growth fell from 4.2 percent to 3.9 percent. The 2012 estimate was cut from 4.5 percent to 3.8 percent.
Gold again crossed above the $1,800 per ounce level on the global worries. Gold last traded at $1,811.40, up $19.20.
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