European Stars And Stripes (Newspaper) - October 21, 1987, Darmstadt, Hesse                                Wednesday october 21,1967 the stars and stripes Page 3 Wall Street collapse causes panic Selling around world by tit associated press fran Lac Selling Ilia swept through Slock markets around the world monday continued with erect by tuesday morning is share Price plunged when the Tokyo and aus radian Slock markets opened. The Hong Kong Stock Market did not open tuesday and officials said it would slay shut for the rest or he week after inc Market s key Index dropped 11 percent monday. In Tokyo inc nikkei average of 225 stocks dropped 972 Points in Early trading to 24,775. Market experts did inc Tokyo Exchange was flooded with sell orders a fallout from monday s devastation on Wall Street which erased iso3 billion off he value of . Stocks and drove the Dow Jones average Down 508 Points. In Sydney the first hour of trading tuesday Cut inc value of australian stocks by 20 percent dropping inc Index Tor All Ordinary shares to 1,645.80 from monday close of 2,064.70. One broker said in was everything you Ever imag ined a Stock Market crash to be on monday Slock prices around the world Plum meted taking their Cue from Wall Street s downward spiral late last week. Panic Selling gripped Stock exchanges in Tokyo Hong Kong London Frankfurt Amsterdam and other financial centers Wilh records set for one Day losses. Shares opened the trading Day monday in the far East with a nosedive with investor Confidence shaken after a record single Day decline on Wall Street Friday. Stocks fell sharply monday on inc Tokyo Stock Exchange. The nikkei Stock average of 225 selected is sues dropped 620. Is Points to dose at 25,74 5.5 5ihc sixth largest drop in the history of the Tokyo Market. In Hong Kong a Selling wave swept the Stock Exchange monday. The hang seng Index fell 420.81points to 3362.39, a record one Day plunge of 11 per cent. Volume totalled 4.18 billion Hong Kong dollars or around $537 million up 12 percent from Friday stinging losses were also posted monday in Sydney Taipei and other asian centers in London monday the financial times Stock Exchange 100-share Index finished at 2,052.3, Down 249,6 Points or 10.8 percent from last week s close. Millions May be Hurt by Market s plunge new York Al the Stock mar Ket s stupefying drop has injected fright ening uncertainly into the Economy an could have a profound Impact on Mil Lions of americans who Don t ordinarily think about inc wild gyrations of Wall Street. The results of a violently depressed Stock Market May be Felt Over the next several months in the form of lower con Sumer spending higher unemployment reductions in business plans and even recession economists said monday. The Slock Market always has been leading indicator of the Economy said John Markese vice president of the american association of individual investors in Chicago. Tjie Impact of a Bear Market already has started to affect fortunes on Wall Street where Many Young professional broken accustomed 10 six figure salaries and High priced Manhattan condos arc confronting the Prospect hey May Lake pay cuts or possibly lose their jobs. More than 1,000 people have Bee Laid off in the past month and several major brokerages reportedly Are contemplating big restructurings on the theory that the Market s 5-year-old upward direction has reversed and interest rates arc starting to Rise  economists said the sudden loss of hundreds of billions of dollars Worth of Slock value would Ripple through the Economy in Waves simply by making investors much More cautious about where they put their Money or convincing the to keep it in Safe interest bearing savings  Tot of people could be affected by a prolonged and severe decline in the mar Ket said James Lorie a professor at the University of Chicago s graduate Busi Ness school. A major Market decline represents a major decline in wealth an people s willingness to spend Money de pends on wealth. The indirect effect could be significant to people who Don t  example investors who had wanted to buy new cars houses or appliances with earnings from their Slock or Mutual funds might scrap Hose plan Snow. A photo Wenry trader slumps in chair at Toronto Stock Exchange after hectic Day of trading. Reagan downplays drop by the associated press president Reagan sought to soothe Panicky investors monday by calling the Stock Market s 508-Poinl plunge inconsistent with healthy economic signals but other while House officials i congressional leaders and the new York Stock Exchange s chairman suggested the drop was far More serious. I Don t think anyone should panic because All the economic indicators Are solid Reagan told reporters after conferring with advisers about the Stock Market s worst Day. Nevertheless Robert Ortner a senior administration economist said Phelsn the drop was either a Sharp correction or the first signal of inc next  White House spokesman Martin Filz Walcer said the administration was not alarmed by inc Market s fall but on the other hand in is a situation we have to  David 5. Ruder chairman of the securities and Exchange commission told reporters in Washington thai the Sec was contemplating ways to Hall the plunge and said the Market s volatility is something we All need to worry  in new York nose chairman John Phelan called the sell off the worst Market 1 have Ever seen in my lifetime or would Hope to see  Phelan rejected suggestions that the nation s biggest Stock Exchange would suspend trading or open ale tuesday. But he asserted the drop would have Ripple effects in other markets. Asked his prediction for the Market tuesday pc Lan said i m like everyone else in America. I m Pray ing for an up Day not a Down  Senate majority Leader Robert c. Byrd d-w.va., said of inc Market slide today the bad news is an other drop that can be heard around the  House speaker Jim Wright dismissed i Balder dash the Reagan administration assertion that democrats work on a lax increase package has helped put the Stock Market into a Lails Nin. Treasury Secretary James Baker in a television interview sunday said tax increase Bills approved by House and Senate committees last week helped fuel the Market fall last week. Federal Reserve Board vice chairman Manuel Johnson said in a speech in Washington that financial markets generally appear to be concerned about How the Reagan administration will handle the continuing . Trade deficit and inc Federal budget deficit. Underlying he Market s decline monday were continued fears Over inflation rising interest rates and a weakening Dollar. Gold stocks resist carnage new York a there were some win ners but mostly losers monday As the Slock Market made its dramatic plunge. The most prominent stocks to escape the car nage were those of Gold mining and other pre Cious metals companies. Newmont Gold earned inc distinction of Post ing the Day s Best percentage gain among new York Stock Exchange issues rising $3.75 a share to 139, 50. Callahan mining Rose $2.25 to $32.50 an Sunshine mining gained 25 cents to $5.75. Both Are Silver producers. Gold prices Rose monday As investors follow ing a Long tradition in limes of great uncertainty turned to precious metals As a Haven. Among the Day s biggest percentage losses were retailers Zaire Down $9.12vi a share at $15.s2 i and shoe town Down $2.62 i at 14.50 technology issues such As co disco Down $10.25 at $17.50and Baker Hughes in inc Oil service group which was ofri7.62vr at $13.25.ford motor fell $15.25 to $69 Exxon $10.25 to $33.50 ism $31.2i to $103.25 american express j8 to $22.50 general electric $8.87 i to $41.87 Gillette $8.75 to $24 and americantelephone&telegraph$nj7to$23.62vl 1