Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

Ftse Shares Plummet Smashed By A Downturn Across Atlantic

Recommended Posts

http://uk.biz.yahoo.com/060801/323/gie2s.html

Tuesday August 1, 03:55 PM

London shares plummet midafternoon smashed by a downturn across the Atlantic
LONDON (AFX) - Leading shares lost momentum midafternoon smashed by a dip across the Atlantic with the DJIA opening down with investors appearing to get the jitters as a raft of US data indicated a slow down in the economy once again heightening inflation fears, dealers said..../
Consumer spending accounts for two-thirds of total economic growth and the slowdown in this area was a big factor in the slowing of the overall economy in the spring to a growth rate of just 2.5 percent, less than half the 5.6 percent pace of the first quarter.
The Federal Reserve is hoping to slow the economy enough to keep inflation under control. However, the new report showed the opposing forces facing the central bank. While consumer spending and the overall economy are slowing, inflation is getting worse.
An inflation gauge preferred by the Fed, which is tied to personal spending, showed an increase of 0.2 pct in June, excluding food and energy. Over the past year, that gauge is up by 2.4 pct, an increase matched by a similar rise for the 12 months ending in September 2002.
The 2.4 pct rise is well above the Fed's comfort zone of 1 pct to 2 for core inflation, which excludes volatile energy and food.

If inflation is still raging in the US (where they seem to admit reality more readily) IR may still have a long way to go before Ben calls a halt. The recent rallies we have seen in the stock markets have been due in no small part to the prospect of an end to hikes in the US. Could the correction that began in May continue for awhile longer yet?

Is it really safe to jump back into the market? :ph34r:

Most of the EU exchnages are down:

^ATX ATX (Austria) 3,714.50 16:33 Down -1.50 (-0.04%) Chart, News, Components, more...

^BFX BEL-20 (Belgium) 3,754.69 16:50 Down -41.22 (-1.09%) Chart, Components, more...

^OMXC20C ^OMXC20C N/A 1 Jul, 2003 0.00 (0.00%) more...

^FCHI CAC 40 (France) 4,948.23 16:50 Down -61.19 (-1.22%) Chart, News, Components, more...

^GDAXI DAX (Germany) 5,596.74 16:35 Down -85.23 (-1.50%) Chart, News, Components, more...

^SPMIB S&P Mib (Italy) 36,292.00 16:35 Down -314.00 (-0.8578%) Chart, Components, more...

^IETP ISEQ20 (Ireland) 1,190.83 16:45 Up 3.16 (0.27%) Components, more...

^AEX AEX (Netherlands) 449.96 16:50 Down -4.10 (-0.90%) Chart, News, Components, more...

^OSEAX Total Share (Norway) 441.78 15:30 Up 1.16 (0.26%) Chart, Components, more...

^PSI20 ^PSI20 N/A 1 Jul, 2003 0.00 (0.00%) more...

^SMSI Madrid General (Spain) 1,281.79 11:15 Down -1.26 (-0.10%) Chart, Components, more...

^OMXSPI OMX Stockholm 30 (Sweden) 301.61 16:35 Down -3.95 (-1.29%) Chart, more...

^SSMI Swiss Market (Switzerland) 7,941.83 31 Jul Down -4.67 (-0.06%) Chart, Components, more...

^FTSE FTSE 100 (United Kingdom) 5,880.80 16:35 Down -47.50 (-0.80%)

Edited by Realistbear

Share this post


Link to post
Share on other sites

http://uk.biz.yahoo.com/060801/323/gie2s.html

Tuesday August 1, 03:55 PM

London shares plummet midafternoon smashed by a downturn across the Atlantic
LONDON (AFX) - Leading shares lost momentum midafternoon smashed by a dip across the Atlantic with the DJIA opening down with investors appearing to get the jitters as a raft of US data indicated a slow down in the economy once again heightening inflation fears, dealers said..../
Consumer spending accounts for two-thirds of total economic growth and the slowdown in this area was a big factor in the slowing of the overall economy in the spring to a growth rate of just 2.5 percent, less than half the 5.6 percent pace of the first quarter.
The Federal Reserve is hoping to slow the economy enough to keep inflation under control. However, the new report showed the opposing forces facing the central bank. While consumer spending and the overall economy are slowing, inflation is getting worse.
An inflation gauge preferred by the Fed, which is tied to personal spending, showed an increase of 0.2 pct in June, excluding food and energy. Over the past year, that gauge is up by 2.4 pct, an increase matched by a similar rise for the 12 months ending in September 2002.
The 2.4 pct rise is well above the Fed's comfort zone of 1 pct to 2 for core inflation, which excludes volatile energy and food.

If inflation is still raging in the US (where they seem to admit reality more readily) IR may still have a long way to go before Ben calls a halt. The recent rallies we have seen in the stock markets have been due in no small part to the prospect of an end to hikes in the US. Could the correction that began in May continue for awhile longer yet?

Is it really safe to jump back into the market? :ph34r:

Most of the EU exchnages are down:

^ATX ATX (Austria) 3,714.50 16:33 Down -1.50 (-0.04%) Chart, News, Components, more...

^BFX BEL-20 (Belgium) 3,754.69 16:50 Down -41.22 (-1.09%) Chart, Components, more...

^OMXC20C ^OMXC20C N/A 1 Jul, 2003 0.00 (0.00%) more...

^FCHI CAC 40 (France) 4,948.23 16:50 Down -61.19 (-1.22%) Chart, News, Components, more...

^GDAXI DAX (Germany) 5,596.74 16:35 Down -85.23 (-1.50%) Chart, News, Components, more...

^SPMIB S&P Mib (Italy) 36,292.00 16:35 Down -314.00 (-0.8578%) Chart, Components, more...

^IETP ISEQ20 (Ireland) 1,190.83 16:45 Up 3.16 (0.27%) Components, more...

^AEX AEX (Netherlands) 449.96 16:50 Down -4.10 (-0.90%) Chart, News, Components, more...

^OSEAX Total Share (Norway) 441.78 15:30 Up 1.16 (0.26%) Chart, Components, more...

^PSI20 ^PSI20 N/A 1 Jul, 2003 0.00 (0.00%) more...

^SMSI Madrid General (Spain) 1,281.79 11:15 Down -1.26 (-0.10%) Chart, Components, more...

^OMXSPI OMX Stockholm 30 (Sweden) 301.61 16:35 Down -3.95 (-1.29%) Chart, more...

^SSMI Swiss Market (Switzerland) 7,941.83 31 Jul Down -4.67 (-0.06%) Chart, Components, more...

^FTSE FTSE 100 (United Kingdom) 5,880.80 16:35 Down -47.50 (-0.80%)

? It's only down about 0.8%. Has there been a rally since your post? What caused the rally?

Share this post


Link to post
Share on other sites

Might have something to do with oil jumping 2% on the back of the Iranian PM stating they fully intend to ingore the UN resolution.

i.e. Global oil supply will likely shrink in August as Iran is placed under UN economic sanctions.

Edited by ?...!

Share this post


Link to post
Share on other sites

? It's only down about 0.8%. Has there been a rally since your post? What caused the rally?

You're simply forgetting to discount RB's apocalyptic language which certainly shows clear evidence of hyperinflation. (drops=plummets, slight increase=raging, affected=smashed etc.)

With a little practice you can discount the hyperbole. That's when you realise it's not newsworthy at all.

Let's hope RB is never attacked by a wolf.

Share this post


Link to post
Share on other sites

You're simply forgetting to discount RB's apocalyptic language which certainly shows clear evidence of hyperinflation. (drops=plummets, slight increase=raging, affected=smashed etc.)

With a little practice you can discount the hyperbole. That's when you realise it's not newsworthy at all.

Let's hope RB is never attacked by a wolf.

"London shares plummet midafternoon smashed by a downturn across the Atlantic"

http://uk.biz.yahoo.com/060801/323/gie2s.html

I selected this article to post because of the headline. For some reason, it seemed like it would attract the bulls like bees to honey. I also had a bet with myself that it would get the usual complaints about hyerbole and use of dramatic language. But, as usual, the words were chosen by the author of the article whose view is evidently bearish on the market. IMO, the word "smashed" was a good one as it denotes particularly severe damage. Perhaps a little OTT here as the decline in London was far less than some of the EZ bourses which gently drifted softly downward by 1% or more <_<

Perhaps more dramatic language will come if the market finds a bumpy road ahead. Here is a good one with lots of hyperbole from Sharecast today:

"US open: Techs tumble as profit takers swoop" http://uk.biz.yahoo.com/01082006/214/open-...kers-swoop.html

Or another bit of stock market drama:

"Crashing markets portend dark days ahead for unlucky stockholders"

http://uk.biz.yahoo.com/01009BBA2006/214/s...-cap-round.html

US may turn from its policy of a soft dollar as part of the fight against inflation. New tack by US treasury today:

http://www.usatoday.com/money/economy/2006...on-speech_x.htm

WASHINGTON (AP) — Treasury Secretary Henry Paulson voiced support for a strong dollar on Tuesday and said America "must welcome competition, not run away from it" if the country wants to maintain a competitive advantage.

IN the meantime, sterling is headed skyward on the possibility that Gordon is going to hike on Thursday--do those who control the curency markets already know?

1 U.K. £ =

1 1.8755

Edited by Realistbear

Share this post


Link to post
Share on other sites

You're simply forgetting to discount RB's apocalyptic language which certainly shows clear evidence of hyperinflation. (drops=plummets, slight increase=raging, affected=smashed etc.)

With a little practice you can discount the hyperbole. That's when you realise it's not newsworthy at all.

Let's hope RB is never attacked by a wolf.

:lol:

Share this post


Link to post
Share on other sites

You see! You ARE the boy who cried wolf!!

;)

You see, you forgot to click on the link! I like the author's choice of words. Can't lay claim to them myself and we can't be sure if the author has cried wolf too many times because the stockmarkets may yet go into a correction phase. They have done it before y'know. Remember 1987 and what happened 17 month's later? 1929....we won't go there. :o

http://uk.biz.yahoo.com/060801/323/gie2s.html

Tuesday August 1, 03:55 PM

London shares plummet midafternoon smashed by a downturn across the Atlantic

"Plummet" "smashed" "downturn" wow--you can almost smell the fear. :o

When the market does actually go into correction phase I wonder what they will use to describe it? Anyone remember the words used to describe the 1987 or Dot.com precipitations? "Freefall" "End as we know it" "Careening" "Stomach Churning Losses" <_<

Edited by Realistbear

Share this post


Link to post
Share on other sites

The 2.4 pct rise is well above the Fed's comfort zone of 1 pct to 2 for core inflation, which excludes volatile energy and food.

[/indent]

If inflation is still raging in the US (where they seem to admit reality more readily) IR may still have a long way to go before Ben calls a halt.

No matter what economy you are in, 2.4% inflation is not 'raging'.

You stand accused of regular hyperbole.

You are guilty as charged. How many millions of times have you been told?

Share this post


Link to post
Share on other sites

I believe you RB!

Remember that CO's son just bought an "easily affordable" house. Being a special needs parent must be very demanding...

;)

ooooh, touchy! Yes he was able to afford a 3 bed semi 18 miles from the centre of London. All his mates have now bought too.

And my brother's son can't help having Down's Syndrome, so I don't see the need to mock him, if you were confusing my son with his.

Share this post


Link to post
Share on other sites

Maybe sterling is up against the dollar not because IR rise is anticipated here but, because the US economy seems to be well screwed, IR falls are anticipated there. Soon.

Share this post


Link to post
Share on other sites

No matter what economy you are in, 2.4% inflation is not 'raging'.

You stand accused of regular hyperbole.

You are guilty as charged. How many millions of times have you been told?

There's 3 people, RB! That's an enormous increase from 2 :lol:

Share this post


Link to post
Share on other sites

I believe you RB!

Remember that CO's son just bought an "easily affordable" house. Being a special needs parent must be very demanding...

;)

No wonder he is bullish on houses! Vested interest. It is hard to be a casual observer when family money is at stake.

Even though I have some money in stocks I am very bearish on the markets at the moment and have mostly defensive investments such as short term bonds, utility stocks and oil/gas exploration (hunch bet and based on long term prospects as they have tanked recently) and, a rising star on the London market, UKC which hit all time highs today on rumours of a take-over bid.

But its best if we don't take it too seriously and keep to light hearted banter. Different opinions are vital to discussion after all.

Share this post


Link to post
Share on other sites

No wonder he is bullish on houses! Vested interest. It is hard to be a casual observer when family money is at stake.

Iit's dead easy to be a casual observer. He can afford the house, he doesn't think it will fall in price, he doesn't believe your hyperbole and he wants somewhere to live. QED!

Unlike you he views houses as somewhere to live, not a financial investment. Like me he couldn't give a toss whether it rises in value.

In fact he realises that this will bring him closer to trading up in a few years. <_<

Share this post


Link to post
Share on other sites

ooooh, touchy! Yes he was able to afford a 3 bed semi 18 miles from the centre of London. All his mates have now bought too.

And my brother's son can't help having Down's Syndrome, so I don't see the need to mock him, if you were confusing my son with his.

Oh what has your brother's son got to do with this exactly?

Touchy? Erm, pot? Kettle?

I would probably not confuse your son with his as I have never met either. But don't start taking a pop at people and not expect anything back.

Next thing you'll be telling everyone you have a wooden leg and could be mistaken for Heather Mills when the wind is blowing in the right direction.

;)

Share this post


Link to post
Share on other sites

No matter what economy you are in, 2.4% inflation is not 'raging'.

You stand accused of regular hyperbole.

You are guilty as charged. How many millions of times have you been told?

How about "pervasive" when describing inflation. That has a nice ring to it:

http://www.iht.com/articles/2006/08/01/business/ecb.php

Inflation fears push Europe to take stand
By Carter Dougherty International Herald Tribune
Published: August 1, 2006
FRANKFURT Already vexed by high oil prices, the European Central Bank is preparing to raise interest rates on Thursday because it is starting to worry that expectations of more
pervasive inflation
will become a self-fulfilling prophecy.
Over the past six months, a raft of data has suggested that consumers, investors and professional forecasters are bracing for the possibility of higher prices in the 12 countries that use the euro.

<_<

Share this post


Link to post
Share on other sites

Oh what has your brother's son got to do with this exactly?

Touchy? Erm, pot? Kettle?

I would probably not confuse your son with his as I have never met either. But don't start taking a pop at people and not expect anything back.

Next thing you'll be telling everyone you have a wooden leg and could be mistaken for Heather Mills when the wind is blowing in the right direction.

;)

I've spoken about my brother's son before on this forum, and you obviously thought I was referring to my own son.

Not nice.

Share this post


Link to post
Share on other sites

I never knew your brother's son had this condition.

So please don't expect me to apologise for something I never knew anything about. I won't ask why you've spoken about this on a discussion forum on house prices, but I regret any offence that I caused you about his condition.

Share this post


Link to post
Share on other sites

Here is some hyperbole:

http://uk.news.yahoo.com/01082006/325/new-...ror-threat.html

New system warns of "severe" terror threat

Reuters Tuesday August 1, 01:22 PM

LONDON (Reuters) - Britain launched a new security alert system on Tuesday, ranking the terrorist threat to the country as "severe" and saying an attack was highly likely.
It was the first time the government had published such information. Until now, it has argued that doing so would cause unnecessary alarm.
But faced with growing criticism that it was failing to spell out the threat from groups like al Qaeda, the government has decided to follow the lead of other countries and introduce a graded alert system.
It has five levels ranging from "low" (attack unlikely) to "critical" (attack expected imminently), and is similar to the one used in the United States for the past four years, although, unlike the U.S. model, it is not colour-coded.
"Severe" is the second highest level
.
The threat level was posted on a new Web site -- www.intelligence.gov.uk -- and on the Home Office (interior ministry) and security service sites.

With the posting of a "severe" threat level we all have to decided whether it is the government crying wolf or if the extremists meant it when they threatened Britain with more pain. Experience shows that these people are capable of carrying out threats.

Point: heads up warnings are sometimes dramatic but sometimes its the only way writers of all these articles we see on the net can grab attention. No one wants to read something with a headline like: "House prices appreciate." No, the EAs prefer words like "soar", "up up and away from FTBs ability to buy," "skyrocket," "Bust all records," "Will double in 5 years," and so forth.

Share this post


Link to post
Share on other sites

I never knew your brother's son had this condition.

So please don't expect me to apologise for something I never knew anything about. I won't ask why you've spoken about this on a discussion forum on house prices, but I regret any offence that I caused you about his condition.

I'm sorry too - I'm a bit touchy about the subject but I realise now you weren't referring to him.

I posted a long long time ago on a thread about public service workers, I think.

Share this post


Link to post
Share on other sites

personally I think a 0.25% rise will be just what the doctor ordered.

I t will save a much larger spate of rises later.......it will also depress wage inflation further as unemployment kicks in.Along with higher fuel bills etc this will ****-up retail,on which so many jobs are now dependant.

the plus-side to this is it will weaken sterling,so earnings from other currencies will improve,making our stockmarket look quite cheap.

.....I set my own wages so I'm alright jack!!!!!(as long as the work is there!!....which it is for the next 4 years for me!!!!!) :D:D:D

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.