Futures Point Lower After Global Selloff

U.S. stock index futures pointed slightly lower Monday after another wave of selloffs across Asia and Europe as investors worried about a global recession.

Japanese stocks tumbled to 26-year lows and most other Asian markets fell heavily in chaotic trade, while in Europe the main indexes were down between 4 and 5 percent.

“It’s a little crazy again today,” Art Cashin, director of floor operations at UBS, told CNBC. “I wish we could see a little more signs of panic. It’s the last Monday in October, it’s a perfect day for it if we could really get ‘em to throw ‘em out the window, this could be important today.”

With the carry trade unwinding the Japanese yen surged against the dollar, despite a warning from officials in the Group of Seven that its rise may unbalance the global economy.

"We are probably going to record the highest ever fall in stocks in the month of October," Angus Campbell, head of sales at Capital Spreads, told "Worldwide Exchange", adding "certainly the history books will be re-written there."

In early earnings news, Verizon Communications narrowly beat estimates by posting a profit of 66 cents per share, a penny ahead of expectations.

Also, health care provider Humana said its profit slipped 39 percent, but it too beat estimates by posting earnings of $1.49 a share, two cents better than estimates.

Energy fell further, with U.S. light, sweet crude dropping more than $2 a barrel below $62 as the deteriorating global economy continued to weigh on prices.

The wave of stock selloffs sweeping world markets may be partially caused by the fact that many governments increased guarantees for bank deposits, making them a much safer investment, Marc Faber, author of the "Gloom, Doom and Boom Report," told CNBC Monday.

Other analysts said the current selloff is caused by hedge funds liquidating positions.

Investors will now look to the Federal Reserve's meeting on monetary policy for further measures to contain the crisis.

"Certainly there is going to be a rate cut on Wednesday. We expect around half a percentage point," Campbell said.

More U.S. banks applied for the government's lifeline for financial institutions, with Fifth Third Bancorp , which saw its shares sink Friday on questions about the strength of Ohio banks after rival National City agreed to be taken over, saying Sunday it had applied for a $3.4 billion cash injection under a U.S. government plan.

© 2008 CNBC.com