ATLANTA (CNN) -- The major markets of Europe and Asia were sharply lower on Monday as traders looked past America's bank bailout bill and focused on Europe's growing financial crisis.
The most influential European markets -- London's FTSE 100, the CAC 40 in Paris and the XETRA DAX in Frankfurt -- were off about 3% to 6% in the first half of the trading day.
In my previous post, I covered the US banks taking a hit from the financial crisis. This evening, it is the European banks weakening as the crisis spreads, pulling the Asian markets down with them. The slump followed a weekend in which Germany's private financial sector promised to put up an additional 15 billion euros, in addition to the 35 billion euros already pledged, to help shore up Hypo Real Estate bank, the nation's Finance Ministry said Sunday.
Italian Prime Minister Silvio Berlusconi is pushing is bailout similar to the one passed by the U.S. Congress last week and signed by President on Friday.
Italian Prime Minister Silvio Berlusconi is pushing is bailout similar to the one passed by the U.S. Congress last week and signed by President on Friday.
Asian and Pacific markets were roundly lower on Monday. Japan's Nikkei Exchange closed down 465.05 points, or 4.25%, at 10,473.09 on Monday, extending Friday's three-year low. The Korea Exchange in Seoul, South Korea finished the day off 4.3%.
The Australian Securities Exchange plunged about 3.4% to 4,544.70, and Hong Kong's Hang Seng was off nearly 5% of its value, falling to 16,803.76. The selloffs are traders' first reactions to America's $700B bank bailout and weakening financial markets across Europe.
It has begun!
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