Share Markets Tumble Around The World

[cool_hand]

http://www.bbc.co.uk/news/business-11740913

Share markets around the world have tumbled, with investors worrying about Irish government debt and possible measures in China to tackle inflation.

Europe's main markets opened 1-2% lower, following earlier falls in Asia.

This was despite efforts by G20 leaders to reassure investors about what would happen if the Irish Republic defaulted on its debt.

China's main index suffered its biggest one-day fall for a year because of fears interest rates will have to rise.

The Shanghai Composite index closed down 5% amid speculation that the Chinese government could act to try to limit inflation in the coming days.

"There are some rumours there might be another interest rate hike this weekend," said Linus Yip from First Shanghai Securities in Hong Kong.

Figures released on Thursday showed the Chinese inflation rate had reached a two-year high of 4.4%, largely due to rising food prices.

This was despite recent government efforts to dampen price rises and cool its rapidly growing economy through earlier interest rates rises and by introducing limits on bank lending.

'Unhelpful'

In Hong Kong, the Hang Seng index was down 1.9%. Japan's Nikkei index was down 1.4%.

In Europe, figures also showed that the economic recovery in France and Germany had slowed in the third quarter.

A slowdown had been expected, especially in Germany which enjoyed record growth in the previous quarter. But both figures were slightly lower than economists had been predicting.

France's Cac 40 share index opened 2% lower, while Germany's Dax index and the UK FTSE were both down by more than 1%.

The subdued sentiment coincided with the end of the G20 in South Korea, where leaders agreed to work together to boost global growth.

European members of the G20 - France, Germany, Italy, Spain and the UK - issued a statement aimed at reassuring the bond markets, which pushed the Irish government's cost of borrowing to record levels this week.

Irish Prime Minister Brian Cowen said the intervention had not been helpful.

"What has been said there has had, I think, an unforeseen consequence, perhaps," he added.

Irish bond yields fell, however, reflecting increased confidence in the likelihood that Irish government debt would be paid back.

They dropped to 8.5%, down from the all-time high of 8.95% reached on Thursday.

So China are worried about inflation at 4.4%. What is happening here. Oh, Merv does not think inflation is a problem.

[Realistbear]

http://www.bbc.co.uk/news/business-11740913

[. What is happening here. Oh, Merv does not think inflation is a problem.

The problem for Merv is to balance the interests of the housing market and our future viability as a nation.

[cool_hand]

http://www.bbc.co.uk/news/business-11740913

Share markets around the world have tumbled, with investors worrying about Irish government debt and possible measures in China to tackle inflation.

Europe's main markets opened 1-2% lower, following earlier falls in Asia.

This was despite efforts by G20 leaders to reassure investors about what would happen if the Irish Republic defaulted on its debt.

China's main index suffered its biggest one-day fall for a year because of fears interest rates will have to rise.

The Shanghai Composite index closed down 5% amid speculation that the Chinese government could act to try to limit inflation in the coming days.

"There are some rumours there might be another interest rate hike this weekend," said Linus Yip from First Shanghai Securities in Hong Kong.

Figures released on Thursday showed the Chinese inflation rate had reached a two-year high of 4.4%, largely due to rising food prices.

This was despite recent government efforts to dampen price rises and cool its rapidly growing economy through earlier interest rates rises and by introducing limits on bank lending.

'Unhelpful'

In Hong Kong, the Hang Seng index was down 1.9%. Japan's Nikkei index was down 1.4%.

In Europe, figures also showed that the economic recovery in France and Germany had slowed in the third quarter.

A slowdown had been expected, especially in Germany which enjoyed record growth in the previous quarter. But both figures were slightly lower than economists had been predicting.

France's Cac 40 share index opened 2% lower, while Germany's Dax index and the UK FTSE were both down by more than 1%.

The subdued sentiment coincided with the end of the G20 in South Korea, where leaders agreed to work together to boost global growth.

European members of the G20 - France, Germany, Italy, Spain and the UK - issued a statement aimed at reassuring the bond markets, which pushed the Irish government's cost of borrowing to record levels this week.

Irish Prime Minister Brian Cowen said the intervention had not been helpful.

"What has been said there has had, I think, an unforeseen consequence, perhaps," he added.

Irish bond yields fell, however, reflecting increased confidence in the likelihood that Irish government debt would be paid back.

They dropped to 8.5%, down from the all-time high of 8.95% reached on Thursday.

So China are worried about inflation at 4.4%. What is happening here. Oh, Merv does not think inflation is a problem.

[LuckyOne]

The problem for Merv is to balance the interests of the housing market and our future viability as a nation.

I would have put a bit differently .....

The problem for Dave, Nick, George and Merv is that they have to choose between the interests of those wanting high house prices and our future viability as a nation.

[gravity always wins]

I would have put a bit differently .....

The problem for Dave, Nick, George and Merv is that they have to choose between the interests of those wanting high house prices and our future viability as a nation.

High house prices or jobs seems to be the dilema. Jobs and devaluation will win.

House prices to fall to replacement costs then rise as prices and wages rise.

Its all about jobs for voters now IMO house prices are not much of a consideration anymore I think they get it now.

[SomethingHasToGive]

Which leads us back to the old question .... is now the right time to have cash in the bank?

Probably not... which means gold?

So how come gold prices have fallen over the last 24 hours, is that because everyone has more confidence in the fiat currencies.

From what I gather, shares falling might mean an increase in confidence in fiat money as a result of the G20 ditherings... because everyone agreed notto have a trade war [ this week ].

[shindigger]

Probably not... which means gold?

So how come gold prices have fallen over the last 24 hours, is that because everyone has more confidence in the fiat currencies.

From what I gather, shares falling might mean an increase in confidence in fiat money as a result of the G20 ditherings... because everyone agreed notto have a trade war [ this week ].

Because i finally got physical. :angry: :angry:

[Number79]

Because i finally got physical. :angry: :angry:

D'oh.

I have been saying since the beginning of October that the usual Oct buying opportunity will be pushed out to mid November this year. QE2 seems to have helped that along. We are overdue a reasonable correction and imo it is imminent and will be the time to load up.

[The Masked Tulip]

Isn't there a 20% tax on profits from physical gold in the UK?

[Number79]

Isn't there a 20% tax on profits from physical gold in the UK?

No, not in reality.

Sovereigns and britannias are CGT free but everything is CGT free unless you declare a sale and provide the purchase and sale prices.

[shindigger]

D'oh.

I have been saying since the beginning of October that the usual Oct buying opportunity will be pushed out to mid November this year. QE2 seems to have helped that along. We are overdue a reasonable correction and imo it is imminent and will be the time to load up.

How much of a correction?

I got forced out of my hole by Merv and im narked. With myself mainly. :angry:

Wasnt looking for a quick buck its not a great start.

[_w_]

How much of a correction?

I got forced out of my hole by Merv and im narked. With myself mainly. :angry:

Wasnt looking for a quick buck its not a great start.

If you bought physical gold I assume you are playing the long game. If you are then your only concern should be as to when real interest rates will turn positive (we are at circa -5% today). Corrections don't matter, however sharp.

[_w_]

How much of a correction?

I got forced out of my hole by Merv and im narked. With myself mainly. :angry:

Wasnt looking for a quick buck its not a great start.

I need to add an anecdote that will make you feel good I think: every time I buy physical gold (including on Monday!), it marks a short term top . I put it down to emotional rather than rational factors driving my physical purchases, I don't think I can help it. Knowing this I spread my purchases over time to soften the blow (always a pretty good technique IME, Benjamin Graham style), and right now I feel pretty happy with myself despite my systematically bad timing.

[Number79]

How much of a correction?

I got forced out of my hole by Merv and im narked. With myself mainly. :angry:

Wasnt looking for a quick buck its not a great start.

I have a target in mind but we shall see, £28 today isn't a bad start though.

Ignore the daily noise, a few £ here and there now could well become totally irrelevant in a few months let alone years.

[Number79]

I have a target in mind but we shall see, £28 today isn't a bad start though.

...and another £18 today, it's getting better.

[shindigger]

...and another £18 today, it's getting better.

Yeah, fantastic. :angry:

[headrow]

Yeah, fantastic. :angry:

I had a get in price of 540 for African Barrick Gold which it has just fallen through and i'm waiting until the BULP etf is 1100 and then i'm in that , its 1120 at the moment.