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Markets Plummet On Banking Woes

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http://news.bbc.co.uk/1/hi/business/7300017.stm

European and Asian stock markets have fallen heavily in reaction to the emergency rescue of US investment bank Bear Stearns over the weekend.

London's FTSE 100 index was down almost 2%, in Paris the Cac 40 slumped 3% and Frankfurt's Dax fell 1.4%.

Shares in financial companies have been hard hit as investors worried that there might be more bad news to come.

Asian stocks fell sharply, with Tokyo's Nikkei average closed 3.7% lower and Hong Kong's Hang Seng slumped 5.2%.

In Mumbai the Sensex was also down more than 5%.

Worries about the credit crisis and the health of the banking industry also undermined the dollar.

It fell to 95.72 yen, its lowest level in more than 12 years. The euro hit a record against the dollar, buying $1.5903.

The weak dollar boosted commodities, with oil rising to another record, light sweet crude traded at $111.80 before falling back.

The dollar is also falling because of the expectation that the US Fed will cut interest rates further, making it less attractive to hold dollars as opposed to other currencies.

Credit uncertainty

Investor's confidence has been hit by the trouble at Bear Stearns.

The investment bank was forced to seek emergency funding from the US Federal Reserve last week and was sold over the weekend to JP Morgan Chase for a fraction of its earlier value.

The quick sale failed to calm investors' nerves who this week will receive earnings announcements from other big US investment banks including Lehman Brothers, Goldman Sachs and Morgan Stanley.

"There is persistent credit uncertainty. Market players have been repeatedly let down which shows the sub-prime mortgage problems are so deep-rooted," said Atsuji Ohara, global strategist at Shinko Securities in Tokyo.

"Just buying an investment bank does not solve the problem," he added.

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Heard Justin Urqhart Stewart and Robert Peston on R5 this morning telling it like it is. Veiled comments from RP about people borrowed too much for their houses, although he obviously couldn't say that what he described was "night" and the HPC was "Day".

Nervous laughter from Nicky Campbell and then it was back to listeners texting in sporting cliches.

My favourite was:

Nice on the Phone, add a stone.

Don't think that was a curling reference or even any kind of sporting ref though. :lol:

Edited by bobthe~

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David Buick, Cantor Index. "The markets face a frightening week...We are standing on the edge of a vortex of dispair"

You are Realist Bear and I Claim my $10!

http://news.bbc.co.uk/1/hi/business/7300017.stm

European and Asian stock markets have fallen heavily in reaction to the emergency rescue of US investment bank Bear Stearns over the weekend.

London's FTSE 100 index was down almost 2%, in Paris the Cac 40 slumped 3% and Frankfurt's Dax fell 1.4%.

Shares in financial companies have been hard hit as investors worried that there might be more bad news to come.

Asian stocks fell sharply, with Tokyo's Nikkei average closed 3.7% lower and Hong Kong's Hang Seng slumped 5.2%.

In Mumbai the Sensex was also down more than 5%.

Worries about the credit crisis and the health of the banking industry also undermined the dollar.

It fell to 95.72 yen, its lowest level in more than 12 years. The euro hit a record against the dollar, buying $1.5903.

The weak dollar boosted commodities, with oil rising to another record, light sweet crude traded at $111.80 before falling back.

The dollar is also falling because of the expectation that the US Fed will cut interest rates further, making it less attractive to hold dollars as opposed to other currencies.

Credit uncertainty

Investor's confidence has been hit by the trouble at Bear Stearns.

The investment bank was forced to seek emergency funding from the US Federal Reserve last week and was sold over the weekend to JP Morgan Chase for a fraction of its earlier value.

The quick sale failed to calm investors' nerves who this week will receive earnings announcements from other big US investment banks including Lehman Brothers, Goldman Sachs and Morgan Stanley.

"There is persistent credit uncertainty. Market players have been repeatedly let down which shows the sub-prime mortgage problems are so deep-rooted," said Atsuji Ohara, global strategist at Shinko Securities in Tokyo.

"Just buying an investment bank does not solve the problem," he added.

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ALL & LEICS

Last Trade: 465.25 p

Change: -47.25 (9.22%)

HBOS

Last Trade: 475.00 p

Change: -53.00 (10.04%)

ROYAL BK SCOTL

Last Trade:- 303.50 p

Change: -30.25 (9.06% )

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ALL & LEICS

Last Trade: 465.25 p

Change: -47.25 (9.22%)

HBOS

Last Trade: 475.00 p

Change: -53.00 (10.04%)

ROYAL BK SCOTL

Last Trade:- 303.50 p

Change: -30.25 (9.06% )

dead handy, those high Dividends that is.

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  • 297 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%



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