NEW YORK, March 30 (Reuters) - Global stocks skidded on Monday as President Barack Obama's harsh medicine for ailing U.S. automakers threatened bankruptcy for General Motors and Chrysler, and oil fell below $50 a barrel on the slumping equity markets and a stronger dollar.
The dollar and yen rallied on fears the two automakers may be forced into bankruptcy after Obama rejected their turnaround plans, prompting anxious investors to cut exposure to risk and seek safety in the two currencies.
Gold also firmed as investors sought safety, but gold futures later turned lower on the stronger dollar.
Bank rescues in Europe weighed on financial shares on both sides of the Atlantic, while the renewed concerns about banks and automakers lifted U.S. and European government debt prices.
The flare-up of woes in the banking and auto industries unnerved investors who bid up stocks and the dollar in recent weeks on hopeful signs the economic downturn might be bottoming.
The dollar and yen rallied on fears the two automakers may be forced into bankruptcy after Obama rejected their turnaround plans, prompting anxious investors to cut exposure to risk and seek safety in the two currencies.
Gold also firmed as investors sought safety, but gold futures later turned lower on the stronger dollar.
Bank rescues in Europe weighed on financial shares on both sides of the Atlantic, while the renewed concerns about banks and automakers lifted U.S. and European government debt prices.
The flare-up of woes in the banking and auto industries unnerved investors who bid up stocks and the dollar in recent weeks on hopeful signs the economic downturn might be bottoming.
