The U.S. stock market is closed today in honor of Dr. Martin Luther King's birthday. Markets are open in other countries and it's not a good day:

Stocks from Germany, Hong Kong and India to Brazil tumbled, and U.S. futures posted their steepest drop since 2001 on mounting speculation the world economy is slowing and company defaults will rise.

The MSCI World Index slumped the most since 2002, while Europe's Dow Jones Stoxx 600 Index sank into a bear market as Allianz SE and BNP Paribas SA slid. Hong Kong's Hang Seng Index had its biggest drop in six years after BNP Paribas said Bank of China Ltd. may write down overseas securities by $4.8 billion because of losses from U.S. subprime mortgages. Citigroup Inc. retreated in Frankfurt.

The MSCI World slipped 3 percent to 1,394.23 at 4:47 p.m. in London, extending its decline from an Oct. 31 record to 17 percent. India's Sensitive Index lost the most since 2004, while Germany's DAX had its biggest loss since 2001. Futures on the Standard & Poor's 500 Index sank 4.5 percent. Trading in the U.S. is closed today for Martin Luther King Day.

"It's the worst I've ever seen," said Johan Stein, who helps manage the equivalent of about $14 billion at Nordea Asset Management in Stockholm. "The financial system is in terrible shape, and no one knows where this will end."

Apple's earnings tomorrow will be a big deal. Stocks that can deliver strong earnings in this environment will buck the overall trend.