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It was a sober day for stocks as the death of a political leader combined with economic worries put pressure on the major indexes for much of the day. By the close the Dow sank by 192 points, the S&P 500 fell 21, and the Nasdaq also sank by 47 points. One of the significant stories sparking concern in US markets was the assassination of Benazir Bhutto. News of the Pakistani opposition leader's death caused investor's to focus on the potential for global political instability. Bhutto's death cast a shadow across all major markets in the US Crude oil moved higher as a result. On top of news of the assassination of Bhutto, US weekly inventory data came out on crude stockpiles. The report showed that crude oil dropped to it's lowest level in almost three years. By the close light sweet crude settled above 96 dollars a barrel. Weak economic data was key in sending stocks lower for the day. Figures out on durable goods showed a rise in purchases, but the increase was still lower than expected. Analysts see the weakness in corporate spending as a sign possibly pointing towards a slowing US economy. Also under pressure was the financial sector, that after warnings from a Goldman Sachs' analyst that he expected more writedowns from Citigroup, Merrill and JPMorgan Chase. The analyst also noted that Citigroup may have to sharply cut it's dividend by 40 percent and that's to hang on to capital. The comments fueled an already negative tone in stocks and by the end of trading Citigroup dropped close to 3 per cent. Merrill Lynch and JPMorgan Chase followed closely behind, both sinking by well over 2 percent. In a flight to safety U.S. Treasuries rose on Thursday as investors moved more capital into low risk bonds. The rally in bonds was fueled by the weak durable goods figures along with anxiety over the financial sector. Across the Atlantic, European markets rewarded investors with slim gains there. The big focus was energy shares after spiking oil prices. BP, Total, and Royal Dutch Shell were key gainers. By the close of trade the Dax picked up 35 points, the CAC-40 added on 13, and London's FTSE gained 18. For Reuters, I'm Diane King in New York.