Monday market wrap up: Bailout fails to save global markets

by Tina Kells | October 6, 2008 at 03:46 pm

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The bailout was supposed to save the stock markets, but that didn’t happen. Monday morning global markets opened to steep declines and the carnage never let up. By the end of trading, major markets worldwide had posted significant losses.

Commodities were also impacted by the unanticipated negative aftermath of the American bailout bill. Oil hit a low, selling at an 8 month low of $88US per barrel, settling back around $90US by the end of the day.

CNN Commodities Watch

Oil prices tumbled below $88 a barrel Monday, an 8-month low, as banking turmoil in Europe exacerbated fears that a global economic slowdown will crimp demand for oil and gas.

Crude prices were also pushed lower by a stronger U.S. dollar and weakness in world stock markets.

Light, sweet crude for November delivery fell $6.07 to settle at $87.81 a barrel on the New York Mercantile Exchange. The price of crude has not been this low since Feb. 6 (correct), when the front-month contract settled at $87.14 a barrel.

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