GLOBAL MARKETS-Stocks fall as credit concerns re-emerge
(Updates with U.S. markets, changes byline, dateline, previous
By Karen Brettell
NEW YORK, Nov 1 (Reuters) - World stocks fell on Thursday
while credit markets worsened after Credit Suisse reported big
writedowns and an analyst sounded alarms about Citigroup Inc's
capital, prompting fears that banks will reveal more large
Weaker stock markets encouraged investors to back out of
riskier assets, pushing up the yen against the dollar and
lifting U.S. Treasury debt prices. Gold hit a 28-year high near
$800 an ounce before slipping along with weaker oil prices.
Credit Suisse (CSGN.VX: Quote, Profile, Research) reported a 2.2 billion Swiss franc
($1.9 billion) writedown on bad loans and mortgage investments
on Thursday and said its investment banking division barely
broke even. Its shares tumbled more than 4 percent to its
lowest level of the year.
Citigroup (C.N: Quote, Profile, Research) shares fell nearly 9 percent after a CIBC
World Markets analyst downgraded the largest U.S. bank to
"sector underperformer." The analyst said Citigroup would be
forced to sell assets, raise capital or cut its dividend to
improve its capital ratios.
CIBC also downgraded Bank of America (BAC.N: Quote, Profile, Research), saying it
sees a diminished revenue outlook for the bank.
"Let's face it, we got a pretty big downgrade on the banks
by CIBC. We know there's more to come there," said Tim Smalls,
head of U.S. stock trading at brokerage firm Execution LLC in
The Dow Jones industrial average (.DJI: Quote, Profile, Research) was down 206.96
points, or 1.49 percent, at 13,723.05. The Standard & Poor's
500 Index (.SPX: Quote, Profile, Research) was down 23.76 points, or 1.53 percent, at