[R]9:00PM Frankfurt, 3:00PM New York, 7:00AM Sydney[/R]

Global market sell-off that started in China and Hong Kong quickly spread to other Asian markets and made its way through Europe to markets in Canada, and South America.

Peru, India, Russia, Brazil, Argentina and Colombia were some of the leading emerging markets that lost more than 7%. Developed markets were not spared by investors either.

Germany, Spain, France, and UK fell 6% or more. U.S. markets were closed but are likely to open sharply lower in the wake of global sell-off.

U.S. market indexes have fallen nearly 10% in 2008 on the larger than expected losses at banks and brokerage companies and continued uncertainty related to the health of the financial system and housing market. President Bush’s economic stimulus was widely perceived as a failed attempt to convince global investors that the U.S. can avoid a recession.

The talk of decoupling of Asian and European economies from the U.S. were quickly put aside today and investors were only concerned with the depth and the length of the U.S. recession.

Japan reported its own economic slowdown, and Bank of China was estimated to have a significantly larger loan loss in the American markets, and strength of euro has become new worry among European economists.

Japanese regional economy survey showed a slowing economy on stagnant housing investment, falling auto and retail sales, and strength in yen to dollar.

Bank of China is likely to write-off its assets in riskier loans in America, and the European Central Bank may have to revise its views on increasing interest rates. While inflation is a problem on the continent as food and energy prices are at their five-year high, economic slowdown may become real if the U.S. enter a recession.

After the market closed in Asia, the European markets fell sharply as well.

Germany and Spain fell more than 7% and France and UK declined more than 6%. Switzerland lost more than 5%.

German bank West LB and Commerzbank warned that their sub-prime loans related losses could be twice the previous estimates. Commerzbank fell more than 7% and Deutsche Bank declined 6%.

Hong Kong and Indonesia fell 5.5%. Japan declined 4%, Korea, Thailand, Australia, and Philippines lost more than 2%.

Falling commodities prices and base metal prices did not help many Latin American markets. Peru and Brazil, large exporters of minerals fell sharply as international prices of copper and other metals declined. Brazil worried that widening recession from the housing and construction industry may hobble the broader economy in the U.S. hurting the international prices of its exports and flow of investments in the country.

Anxious investors decided to sell around the world and the U.S. may follow in its footsteps when markets open on Tuesday.

North American Markets indexes

The U.S. stock markets were closed.

In Toronto TSX Composite closed down 547.83 or 4.30% to close at 12,189.29.


South American Markets Indexes