Stock markets across the world have dropped by amounts that will certainly cause a large sell-off when the US opens at 9.30. Analysts blame the Federal Reserve’s announcement about bond purchases and a weak China PMI number.

It is just as likely the drops are based on a maturing concern that major economies are already in a double dip recession which could hobble consumer and business spending for years, and increase unemployment above already high levels.

The DAX is off 3.6%, the FTSE by 4.1%, and the CAC 40 by 4.1%

These sell-offs follow a drop in Asia which took the Hang Seng down by 4.9% and the Nikkei down 2.1%

Douglas A. McIntyre