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Shares fall as recession fears take grip
(Agencies)
Updated: 2008-10-17 00:18 Steep losses The credit market crisis that piled up losses at banks, froze interbank lending and slowed the economy, has taken the MSCI World index down 43 percent this year. Ratings agency Standard & Poor's raised concerns over Ukraine, Hungary and Russia and Iceland's crown currency remained untraded internationally more than a week after its banking sector collapsed. US Treasury yields rose on Thursday on worries that the United States will have to boost debt issuance to help fund the government's massive bank rescue plan. The 10-year government bonds yielded 4.0091 percent, up 6 basis points on the day. The extent of recent equity falls has prompted talk of more rate cuts from the world's central banks. "People said interest rates don't matter because credit markets are not working. Well, interest rates do matter because the economy is not working," said NCB's McAlinden, adding that he expected the Fed to cut later this month. Fed fund futures show a 46 percent chance of a 50 basis point cut and a 54 percent chance of a 25 basis point cut. |
