U.S., European Stock Prices Plummet

Amid mounting jitters about the world economy, stock prices in the U.S. and Europe plunged Friday. The price of Dubai oil, which Korea imports in large amount, hit a new record high as well. The prices of raw materials, including crops and nonferrous metals, have also skyrocketed in the world market, raising concerns about global inflation.

On October 19, the New York Stock Exchange Dow Jones industrial average closed at 13,522.02 points, down 366.94 points or 2.64 percent from the previous day. The tech-heavy NASDAQ Composite Index shed 74.15 points or 2.65 percent to 2,725.16.

Stock prices in major European nations also showed weak performances, including Britain`s FTSE 100 Index, Germany’s DAX Index, and France’s CAC 40 Index.

On October 19, spot prices of Middle East Dubai oil rose 1.39 dollars from the day before and closed at an all-time high of 79.59 dollars per barrel.

U.S. West Texas Intermediate (WTI) for November delivery reached 90 dollars per barrel for the first time in after-hours trading on October 18. The next day, it soared again to 90.07 per barrel and then finished at 88.60 dollars.

On the Kansas City Board of Trade (KCBOT) in the U.S., wheat was traded at 296 dollars per ton last month, up 68 percent year on year. During the same period, the prices of corn and beans also went up by 35 percent and 72 percent, respectively.

Meanwhile, on October 19, the 0Group of Seven (G7) finance ministers and central bankers had a meeting in Washington and said in a statement, “"Recent financial market turbulence, high oil prices, and weakness in the U.S. housing sector will likely moderate world economic growth.” G7 officials also called for China to accelerate the appreciation of the yuan.

higgledy@donga.com kong@donga.com