Stocks Retreat in Asian, Euro Markets

European and Asian markets slid again today as fears that the US is in a recession gained ground—despite efforts to shore up its economy and the likelihood the Fed would cut rates up to 50 basis points this week, reports Reuters. Commodity producers and banks suffered as investors worried about a global slowdown and anticipated more losses tied to the subprime contagion.

Japan’s Nikkei lost nearly 4% and China’s CSI 300 reached its lowest level since November. The FTSEurofirst 300 fell 1.3% percent, taking January's losses near 13%; the MSCI World Index and the DJ Stoxx 600 lost 1% and 1.5%, respectively, as markets in France, the UK and Germany also retreated. "It's stocks down, bonds up again," said a London trader.