Sums it up....https://www.cnbc.com/id/42008545
Global Stocks Get Slammed On Jitters About Debt, Growth
Thursday, 10 Mar 2011 | 11:52 AM ET
World stocks and the euro fell Thursday as a downgrade of Spain's credit added to worries over the euro zone debt crisis, while an unexpected Chinese trade deficit fueled global growth concerns.
Brent oil prices dipped below $115 a barrel on data showing China posted in February its largest trade deficit in seven years. The country's exports, a gauge of global economic activity, suffered a larger-than-expected impact from the Lunar New Year holiday.
Copper prices also fell on data showing China's imports of commodities declined. The retreat in oil prices was limited, however, as forces loyal to Libyan leader Muammar Gaddafi assaulted the eastern oil town of Ras Lanuf, sparking worries about damage to the oil infrastructure.
U.S. stocks tumbled as higher-than-expected claims of unemployment benefits in the United States added to the economic concerns.
"Overseas issues continue to play a role in U.S. markets. The situation in Europe isn't complete, the market continues to have concerns about sovereign credit," said Subodh Kumar, chief investment strategist at Subodh Kumar & Associates in Toronto.
"Markets have been hoping that China would lead the recovery, but when you put this (U.S.) data with slower growth out of China, the idea that everything looks normal is going away."
China exports grew in February from a year earlier well short of forecasts.
The Dow Jones industrial average was last down more than 180 points, while the Standard & Poor's 500 Index lost about 19 points.
The Nasdaq Composite Index also declined sharply.
In Europe, the FTSEurofirst 300 index of top shares fell more than 1 percent. Global stocks measures by MSCI's All-Country World Index slid nearly 2 percent.
The euro slid toward $1.3801 after Moody's downgraded Spain to Aa2 from Aa1, warning of further cuts to the country's credit ratings.
The move comes a few days after Moody's downgraded Greece by three notches, fueling negative sentiment towards struggling euro zone sovereign borrowers on the eve of a summit of the currency bloc.
"If speculators really hit Portugal hard there would appear to be an increased possibility that Spain will be put back under the spotlight, but we don't think Spain will need to be bailed out," said Jane Foley, senior currency strategist at Rabobank.
Increased aversion to risk pushed investors into the perceived safety of U.S. government bonds. Benchmark 10-year Treasury notes were up 8/32 in price, with the yield at 3.4396 percent.