Overseas Markets Dive Amid Pessimism

THE GLOBE AND MAIL: World stocks skidded lower Thursday, stung by the Federal Reserve’s pessimistic assessment of the U.S. economy and the perceived ineffectiveness of measures to kickstart growth.

Benchmark oil tumbled below $84 a barrel while the U.S. dollar strengthened against the euro but fell against the yen.

European shares were sharply lower in early trading. Britain’s FTSE 100 dropped 3.2 per cent to 5,121.71 and Germany’s DAX stumbled 3.4 per cent to 5,249.80. France’s CAC-40 fell 3.6 per cent to 2,830.87.

Ahead of the opening bell, Wall Street was bracing for losses. Dow Jones industrial futures were down 1.1 per cent at 10,886 and S&P 500 futures shed 1.3 per cent to 1,141.10. » | Pamela Sampson | Bangkok | The Associated Press | Thursday, September 22, 2011