European Stars And Stripes (Newspaper) - October 28, 1987, Darmstadt, Hesse                                Wednesday october 2b. 19b7 the stars and sthipes3 of pa96 Tokyo Market prices stabilize by inc associated press prices stabilized on the Tokyo Slock Exchange in Early trading tuesday after Slock markets around the world saw another wave of Sharp declines monday. The 225-Sharc nikkei Stock average which lost 1,096.22 Points or 4.7 percent or its value monday ended tuesday s morning session up 75.60 Points or 0.3 percent at 22,278.16, the Sharp Tumble monday on the Tokyo and Hong Kong exchanges triggered a wave of Stock dumping that swept across Europe and helped drive the Dow Jones average of 30 industrials Down 156.83 Points to 1,793.93, its second largest Point loss. The Hong Kong Exchange opened Ufir a four Day suspension Only to suffer its biggest drop in history. The hang seng Index the Hong Kong Market s prime gauge closed at 2.241.69. Down 1.120,70 Points or 33 percent from the oct. 19 close. The downward trend was Finly established by the time trading began later in London. The financial times Stock Exchange 100-Sharc Index which had been off As much As 157 Points finished in own 111.1 Points at 1,684.1. The London Market staged a late rally on news that underwriters of the British Petroleum co. Pc share offering were seeking a meeting with Treasury officials to discuss the Issue fueling speculation that the offer might be cancelled. In Paris the general Market indicator dropped 7.84 percent. Declines overwhelmed advances 191 to ii. Prices moved lower in Frankfurt where the Frank Furter  Index fell 31.48 to 510.36. In Milan share prices dropped an average 5 percent with Blue Chip issues losing As much As 2 percent of their value. In Switzerland prices fell to a new Low for the year. The credit suisse Index closed Down 12.2 percent at160.7. The Madrid Stock Market sustained a 5.4 percent plunge in ils general Index. The general Index closed Down 14.52 at 2 5.30 As less than half of inc Market s 380 stocks found buyers. In Canada Toronto s 300-Sharc composite Index was off 232.90 Points to 2,b46.49. Share prices also declined on the Montreal Exchange where the portfolio Index fell 103.30 Points to 1,435.94. Declining is sues outnumbered advances 549 to 7g. Galbraith expects Dollar to foil sharply Dow suffers 2nd biggest Point drop London up economist John Kenneth Galbraith says he expects the . Dollar to fall and perhaps to fall quite sharply. Alb rail commenting in a television interview on last week s Stock crash said governments will not be Abc to exercise much control on the Dollar s move ment. I think the Dollar will fall inc 79-year-old economist said on weekend world on the Independent Tele vision network. The downward movement could be quite  the author of Many books including the great crash about the 1929 Stock Market crash said inc fall could be Sharp because the United Stales has made its currency vulnerable by building up big deficits particularly the foreign Trade deficit and Large amounts of dollars Are being held overseas. I Don t think for a moment there s anything or control that s going to be particularly effective in propping up the Dollar he said in the interview Sun Day. But Galbraith also said i Don t think we re in for another great depression of the kind that followed the crash of 1929. Apm Phot first Udy Nancy kit gun poses in 1986 with Ber Mother. Edith Davis it daris1 Home in Phoenix Ariz Mother of first lady Dies Washington Jap Edith Quekett Davis the Mother of first lady Nancy Reagan died of a stroke monday at her Home in Phoenix ariz., the while House announced. She was 91, mrs Davis the widow of the late Chicago neurosurgeon Loyal Davis had been ailing for several years. President Reagan and the first lady will travel to Phoenix on tuesday. Reagan Wilt return to Wash in ton on tuesday evening while the first lady re Mains in Arizona. The president will return to Phoenix at the end of the week when funeral arrangements Are  the statement said. Throughout her life. Mrs. Davis was known Tor her vivacious outgoing style and kindness to those in need. As a Young actress her career included appear ances on Broadway with George m. Cohan and Spencer Tracy among Olsen. She was married briefly to Kenneth Rabbins a new Jersey businessman but the Union broke up shortly after her daughter Nancy s birth and the couple was later divorced. Her life changed dramatically after her marriage in 1929 to Davis who adopted Nancy when she was 14. Mrs. Davis gave up her acting career and de voted herself to her husband family and Community work. She became the first chairman front 1938 to 1963, of the women s division of the Chicago Community fund and served on the boards of the american cancer society and of the passavant Hospital. New York up the Dow Jones Industrial average suffered its second largest Point loss Ever monday As investors remained sceptical that the Rea Gan administration would be Able to Avert severe eco nomic repercussions from last week s Stock Market crash. See Stock listings Pant 27 the Dow plunged 56.83, or 8.04 percent to1793.93. It was the Blue Chip indicator s sixth largest percent age decline since the average was expanded to 30 stocks in 192$ and its biggest Point slide since its re Cord 508-Point crash oct. 19. The new York Slock Exchange Stock Index dropped 11.34 o 127.88. Standard & poor s 500-Stoek Index fell 20.55 to 227.67. Losers pounded gainers 1,783 to 132 among the 2.019 issues crossing the nose tape. Volume swelled to 308.8 million shares the sixth heaviest trading in big Board history even though the session was shortened by two hours. After the Market closed the nose and the Ameri can Stock Exchange announced they would extend their Early 2 . Est closings through the rest of the week. If in was Black monday last week it was Black and Blue monday today said Hugh Johnson head of the investment policy committee at first Albany corp. Following stunning tosses in Tokyo Hong Kong and London stocks toppled in Early new York trading. As investors around inc world looked for signs that president Keagan has recognized the severity of the crisis one Wall Street analyst predicted the Dow would fall to Between 1300 and 1500 within the next week. Elaine Gari Arcolli an analyst at she arson Lehman Brothers inc. Said inc Dow must drop another 15 per cent to 20 percent to restore a More traditional relationship Between dividend yields on stocks and yields on Long term Bonds. Everybody is Snell shocked and nobody knows what to think Garzarelli said. If the fed docs not urn off inc liquidity Lap by lightening monetary policy a move that would push up interest rates inc Stock Market s collapse will Lead at worst to a recession she said. The Federal Reserve added liquidity to the banking system an hour and a half earlier than it usually con ducts operations in the open Market. The Market wants to gel a sense that there is a Clear recognition in Washington of the magnitude of the problem in the financial markets said Johnson Atrim Albany corp. Formal negotiations on cutting the Federal budget deficit were to begin tuesday and House speaker Jim Wright a Texas predicted they could Lead to a 123 billion deficit reduction target. Only a week ago. The Dow plummeted 508 Points to 1.738.74, losing 22.6 percent of in value in a plunge eclipsing the 11.8 percent loss thai occurred oct. 28, 1929 and ushered in the great depression. Southern co. Led the big Board actives falling 1 / to 21 k. Pinnacle West followed losing to to 28. Among Blue chips. At to fell 2vi to 26vford plunged 6 to 68 and general electric Slid 4 to 42 it. Prices plunged in heavy trading of Over the counter and american Slock Exchange issues