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Wall Street slips on worsening U.S. housing figures |
Baja Real Estate & Economy News
 (CNN) -- The Dow Jones dropped more than 200 points lower on the opening bell Friday after new figures showed the construction of U.S. homes fell to a 17-year low in September.
In Europe London's FTSE, Paris's CAC-40 and Frankfurt's DAX saw earlier gains slip in the Dow's wake.
Privately owned housing starts fell to a seasonally adjusted annual rate of 817,000 in September, according to the U.S. Commerce Department. The rate was down 6.3 percent from August's revised reading of 872,000 and 31.1 percent lower than September 2007.
However, some good news came when bank-to-bank lending rates dipped again -- a positive sign for the credit markets and an indication that government moves to boost the economy by pumping trillions into banks was having an effect.
U.S. President George W. Bush said it had taken "credit markets time to freeze" and that it would take them "time to thaw."
Bush called the intervention from governments to bailout banks "extraordinary" and denied the purchase of shares amounted to nationalizing them.
He insisted Americans should have confidence the economy would recover.
Mike Lenhoff of Brewin Dolphin Securities in London said stability would return -- eventually.
"(But) We will see the volatility remain with us for a very long time," Lenhoff said.
"I am convinced that we actually will see a recovery. It may take some time, but I'm pretty sure we will see a recovery."
In Asia, Japan's Nikkei closed up 2.8 percent, recovering from its 11 percent slump Thursday -- the worst loss in two decades.
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