Global Equity Meltdown
Last night equities tumbled, with significant falls in US and Asian markets.
American stocks shed nearly $900bn in market value with the S&P 500 falling for a seventh consecutive day, the longest spell of intraday declines since 1996.
The Dow Jones Industrial Average closed below 9,000 for the first time in five years.
Tokyo witnessed its largest one-day drop since 1987 as the Nikkei fell 9.6% while the Hang Seng hit a three year low. Shares in Australia slid 8.3%.
In currencies, Sterling fell against the Dollar and Euro amid concerns over the UK economy after the IMF delivered its verdict that the UK could be one of the countries hardest hit by the global downturn.
The Yen fell following a return into high yielding currencies on the back of Tuesday's concerted rate cuts by central banks. Three month Libor has continued to rise slightly despite the coordinated action.
Oil prices decreased yesterday to $87 a barrel while the price gold fell below $900.
G7 ministers meet today to discuss measures to address the lack of confidence in the global economy. Thus far the action taken to restore market confidence has failed to yield any significant positive results, reflected in the falls in equity markets and high Libor rates.
There is market speculation that Alistair Darling may propose the option of other nations guaranteeing lending between banks in an effort to ease markets.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
American stocks shed nearly $900bn in market value with the S&P 500 falling for a seventh consecutive day, the longest spell of intraday declines since 1996.
The Dow Jones Industrial Average closed below 9,000 for the first time in five years.
Tokyo witnessed its largest one-day drop since 1987 as the Nikkei fell 9.6% while the Hang Seng hit a three year low. Shares in Australia slid 8.3%.
In currencies, Sterling fell against the Dollar and Euro amid concerns over the UK economy after the IMF delivered its verdict that the UK could be one of the countries hardest hit by the global downturn.
The Yen fell following a return into high yielding currencies on the back of Tuesday's concerted rate cuts by central banks. Three month Libor has continued to rise slightly despite the coordinated action.
Oil prices decreased yesterday to $87 a barrel while the price gold fell below $900.
G7 ministers meet today to discuss measures to address the lack of confidence in the global economy. Thus far the action taken to restore market confidence has failed to yield any significant positive results, reflected in the falls in equity markets and high Libor rates.
There is market speculation that Alistair Darling may propose the option of other nations guaranteeing lending between banks in an effort to ease markets.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Labels: credit crunch, global recession, Oil
posted by Wise Money @ 9:27 AM
0 Comments:
Post a Comment
Links to this post:
Create a Link
<< Home