Dow Jones Loses 4.8%, Crude Oil Prices Decline to $60 Per Barrel, on Recession Concerns

Crude prices tumble on recession concerns

2008-11-07 05:01:21

NEW YORK, Nov. 6 (Xinhua) --

Crude futures tumbled again Thursday on concerns that global economic recession would curb energy consumption.

The International Monetary Fund predicted developed economies would deliver their worst performance since World War II.

The IMF said it now expects 2009 global economic growth of 2.2 percent, down 0.8 percentage point from its October forecast. It also lowered its 2009 baseline oil price projection to 68 dollar a barrel from 100 dollars.

The U.S. dollar strengthened after the European Central Bank cut its key rate by half a percentage point to 3.25 percent Thursday.

Light, sweet crude for December delivery was down 4.53 U.S. dollars to 60.77 a barrel on the New York Mercantile Exchange after hitting a 19-month low of 60.16 dollars.

Editor: Yan

Wall Street plunges on weak economic data, corporate earnings

2008-11-07 05:22:52

NEW YORK, Nov. 6 (Xinhua) --

Wall Street tumbled again on Thursday, as retail sales numbers and jobless claims worried investors that the economy is in a deep recession.

The U.S. Labor Department posted new claims for unemployment benefits dipped by 4,000 to a seasonally adjusted level of 481,000last week, which have run above 400,000 for 16 weeks. Economists regard the figure above 400,000 as a recessionary level. Moreover, long-term claims jumped to 3.84 million, the highest level in 25 years.

Meanwhile, retailers reported disappointing October sales numbers, showing consumers are reducing their spending. Wal-Mart Stores Inc. reported a better-than-expected 2.4 percent rise in October sales at stores open for at least a year. But Limited Brands, Gap Inc. and Macy's reported worse-than-expected sales. Even discounters such as Target and Costco posted weak numbers.

Shares of Cisco Systems Inc., the world's largest maker of networking equipment, fell sharply as the company forecast the first revenue decline in five years.

The Dow Jones Industrial Average tumbled 443.48 points, or 4.85percent, to 8,695.79 and the Standard & Poor's 500 Index sank 47.89 points, or 5.03 percent, to 904.88. The Nasdaq Composite Index fell 72.94 points, or 4.34 percent, to 1,608.70.

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