are expecting QE3.”
Amid the uncertainty, traders pulled out of any risky investments — such as stocks, particularly financial ones, the euro and emerging market currencies — to pile into safe havens: U.S. Treasurys, the dollar, the Japanese yen and gold.
European shares slumped in early trading. Britain’s FTSE 100 dropped 2.9 percent to 5,136.36. Germany’s DAX fell 4.7 percent to 5,280.13, and France’s CAC-40 tumbled 4.6 percent to 3,003.64.
Markets in the U.S. were closed for the Labor Day holiday.
Banking stocks were among the hardest hit after the U.S. government sued 17 financial firms Friday for selling Fannie Mae and Freddie Mac billions of dollars worth of mortgage-backed securities that turned toxic when the housing market collapsed.
Amid the uncertainty, traders pulled out of any risky investments — such as stocks, particularly financial ones, the euro and emerging market currencies — to pile into safe havens: U.S. Treasurys, the dollar, the Japanese yen and gold.
European shares slumped in early trading. Britain’s FTSE 100 dropped 2.9 percent to 5,136.36. Germany’s DAX fell 4.7 percent to 5,280.13, and France’s CAC-40 tumbled 4.6 percent to 3,003.64.
Markets in the U.S. were closed for the Labor Day holiday.
Banking stocks were among the hardest hit after the U.S. government sued 17 financial firms Friday for selling Fannie Mae and Freddie Mac billions of dollars worth of mortgage-backed securities that turned toxic when the housing market collapsed.
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