Stock prices around the world tumbled Friday after Washington’s tentative deal to buy up bad mortgage debt and ease the flow of capital though Wall Street met with stiff opposition from House Republicans.
After 45 minutes of trading in New York, Standard & Poor’s Retail Index was down 1.4 percent, or 5.17 points, to 366.16, outstripping the decline in the Dow Jones Industrial Average, which was off 0.6 percent, or 66.98 points, to 10,955.08.
“There are disagreements over aspects of the rescue plan, but there is no disagreement that something substantial must be done,” President Bush said in an address from the White House Friday morning. “The legislative process is sometimes not very pretty, but we are going to get a package passed.”
Among the retail stocks losing ground in early trading were Abercrombie & Fitch, down 2.3 percent; J.C. Penney Co., 2.1 percent, and Limited Brands, 1.4 percent.
In Tokyo, the Nikkei 225 fell 0.9 percent, or 113.37 points, to 11,893.16. Among the decliners were Link Theory Holdings, down 4.3 percent, and Shiseido Co., 1.1 percent.
On the London Stock Exchange, the FTSE 100 was down 1.8 percent, or 95.36 points, to 5,101.66, by 2:15 p.m., local time. Marks & Spencer shares were down 2.9 percent and Burberry Group was off 2 percent in intraday trading.
Elsewhere in Europe, LVMH Moët Hennessy Louis Vuitton was trending down 2.7 percent and PPR was off 3.4 percent.
For complete coverage, see Monday’s issue of WWD.