By- Suzie-Q @ 12:00 PM MST
Global, US Market Updates
AP: US markets pull back after steep open:
Wall Street retreated Monday as Wall Street and other global markets reacted to JPMorgan Chase & Co.’s government-backed buyout of the stricken investment bank Bear Stearns Cos.
On top of supporting the buyout, the Federal Reserve took the extraordinary step of lowering the rate it charges to loan directly to banks on Sunday night — two days before its scheduled meeting Tuesday. The central bank lowered the discount rate by a quarter point to 3.25 percent.
AP: Dow trades down 182 points after markets open:
In the first minutes of trading, the Dow Jones industrial average is trading down 182 points at the 11,768 level.
Reuters: US Dollar drops after weekend Fed action:
The dollar tumbled to a 12-1/2 year low against the Japanese yen on Monday and record lows against the euro and the Swiss franc as liquidity-boosting measures launched by the Federal Reserve over the weekend failed to quell worry about the health of the U.S. financial sector.
The dollar reacted to the Fed taking emergency measures to stem the fast-spreading financial crisis, cutting its discount rate by 25 basis points to 3.25 percent on Sunday and opening up discount window lending to major investment banks, a tool not used since the Great Depression.
AP: Bush says his Administration is on top of the situation:
President Bush says his administration is on top of the situation in dealing with the slumping economy.
Bush says that the country is in challenging times. But he also says another thing is for certain: ” We’ve taken strong decisive action.”
NY Times: Global Markets In Free Fall:
Stock markets across Europe fell 2 to 3 percent soon after opening on Monday, following drops on major Asian stock markets of 3 to 5 percent. Tokyo’s benchmark index hit a three-year low before it rebounded slightly; Chinese and Indian stock markets tumbled even more sharply.
In the United States, stock futures plunged overnight, indicating that the markets would open to heavy losses. Futures in the Dow Jones industrial average were down more than 200 points.
