Economy
BBC: European Stock Market in "Panic Mode" as a dozen markets worldwide drop today
By Business Report
Jan 21, 2008, 09:05
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"It's becoming more and more difficult as the market is now in panic mode."
- Hugues Rialan of Robeco France
Editor's Note: The drops reported thus far today for Europe and Asia are dramatic (See the BBC report below: Global shares tumble on US fears.
The WestLB is Germany's third largest regional bank. It expects to lose 1 Billion Euros and another Billion in write-downs due to losses to U.S. sub prime mortgages and unauthorised stock market trades. The Bank of China also expects big writedowns. It will be interesting to watch the rebound effects of these foreign markets on Stock Exchanges in the U.S. today. Below, the BBC provides the following links to some of the leaders of the plunging capitalist economy.
"The scale of the losses that will hit Wall Street banks could approach half a trillion dollars as large numbers of sub-prime home loans go bad. And the carnage in the financial markets could cause a credit squeeze that will dampen economic growth for years to come."
After the DOW fell by another 306 points last Thursday, Tim Paradis (Chicago Tribune) wrote:
"Wall Street extended its 2008 plunge Thursday, sending the Dow Jones industrials down 306 points and to their lowest level since last March after a regional Federal Reserve report showed a sharp and unexpected decline in manufacturing activity. Downgrades of key bond insurance companies added to the market's black mood, with investors fearing an escalation of months of credit market problems."
The following articles were written by Ian Gordon, Economic Forecaster and Interpreter of Kondratieff Cycle, -The LongWave Analyst; Bolder Investment Partners and republished on Axis of Logic:
THIS IS IT! (Series on Kondratieff Cycle-1)
THE CREDIT CRUNCH (Series on Kondratieff Cycle-2)
“FAR FROM THE MADDING CROWD’S IGNOBLE STRIFE…” (Series on Kondratieff Cycle-3)
HUBRIS AND GREED (Series on Kondratieff Cycle-4)
IN NEW YORK MONEY IS GOD AND GOD IS MONEY. (Series on Kondratieff Cycle-5)
THE FEDERAL RESERVE….WHAT HAS IT DONE FOR YOU LATELY? (Series on Kondratieff Cycle-6)
The early winds of the Kondratieff Winter may very well be upon us ...
- Axis of Logic
Addendum
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Australia |
ASX 100 |
-138.40 |
-2.97% |
4,515.60 |
1/21 4:47pm |
|
Australia |
ASX All Ords |
-168.50 |
-2.91% |
5,630.90 |
1/21 4:47pm |
|
Australia |
ASX Mid-cap 50 |
-162.50 |
-2.75% |
5,743.10 |
1/21 4:47pm |
|
Hong Kong |
Hang Seng |
-1,383.01 |
-5.49% |
23,818.86 |
1/21 5:59pm |
 |
Hong Kong |
HSCC Red Chip |
-278.84 |
-5.11% |
5,178.95 |
1/21 4:27pm |
|
Japan |
Nikkei 225 |
-535.35 |
-3.86% |
13,325.94 |
1/21 4:30pm |
| Europe |
|
|
Belgium |
Bel 20 |
-170.39 |
-4.61% |
3,524.74 |
1/21 3:32pm |
|
Europe |
DJ Stoxx |
-155.83 |
-4.65% |
3,195.82 |
1/21 3:32pm |
|
Europe |
Euronext 100 |
-42.32 |
-4.74% |
850.34 |
1/21 3:32pm |
|
Europe |
Euronext 150 |
-67.23 |
-4.48% |
1,432.57 |
1/21 3:32pm |
|
France |
CAC |
-259.09 |
-5.09% |
4,833.31 |
1/21 3:32pm |
|
France |
SBF 80 |
-234.37 |
-4.36% |
5,143.09 |
1/21 3:32pm |
|
France |
SBF 120 |
-182.39 |
-5.00% |
3,468.16 |
1/21 3:32pm |
|
Germany |
DAX |
-456.39 |
-6.24% |
6,857.78 |
1/21 3:32pm |
|
Germany |
MDAX |
-360.20 |
-4.27% |
8,069.28 |
1/21 3:32pm |
|
Germany |
TECDAX |
-54.73 |
-6.91% |
737.61 |
1/21 3:32pm |
|
Netherlands |
AEX |
-20.17 |
-4.48% |
429.91 |
1/21 3:32pm |
|
Norway |
BRIX |
+7.50 |
+0.19% |
3,898.01 |
1/18 12:00am |
|
Norway |
OSE Industry |
-31.45 |
-1.87% |
312.42 |
1/21 3:32pm |
|
Sweden |
OMX |
-36.54 |
-3.82% |
921.09 |
1/21 3:32pm |
|
Sweden |
OMSX All Share |
-2.90 |
-0.93% |
310.09 |
1/18 12:00am |
|
UK |
FTSE 100 |
-218.80 |
-3.71% |
5,682.90 |
1/21 2:32pm |
|
UK |
FTSE All Shares |
-109.21 |
-3.64% |
2,894.31 |
1/21 2:32pm |
|
UK |
FTSE Eurotop |
-131.82 |
-4.59% |
2,741.29 |
1/21 2:32pm |
|
UK |
FTSE Techmark |
-50.00 |
-3.19% |
1,514.99 |
1/21 2:32pm |
| Americas |
|
|
Canada |
TSE 300 |
-480.07 |
-3.77% |
12,257.05 |
1/21 9:32am |
|
Canada |
CDNX |
-85.52 |
-3.27% |
2,532.69 |
1/21 9:32am |
|
Canada |
S&P/TSX 60 |
0.00 |
0.00% |
745.21 |
1/18 5:05pm |
Global shares tumble on US fears
Special Report
BBC
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| Investors remain worried about the state of the US economy | Global stock markets have tumbled, with European indexes heading for their worst day in four years, amid growing fears of a recession in the US.
London's FTSE 100 index fell 3.6% to 5685.2, in Paris the Cac-40 fell 6.7%, and Frankfurt's Dax dropped 5.4%.
Tokyo's Nikkei 225 index slid by 3.9% to its lowest close since October 2005, while India's Sensex shed 7.4%.
Investors have taken little comfort from emergency measures proposed by President George W Bush on Friday.
"It's another horrible day," said Francis Lun of Fulbright Securities in Hong Kong.
"Today it's because of disappointment that the US stimulus is too little, too late and investors feel it won't help the economy recover."
US markets have closed for a public holiday on Monday and will re-open on Tuesday.
'Panic mode'
The worry is that tax breaks and spending measures will do little to boost consumer spending in the US because of problems in the housing market.
Many shoppers are struggling under higher mortgage repayment costs, and default rates have surged.
At the same time, banks have had to become more careful about who they lend to because they have lost billions of pounds on investments linked to the US housing and mortgage markets.
The state of the US economy is very important to many of Europe's and Asia's biggest companies as it is one of their biggest export markets.
Any slowdown in demand is likely to hurt corporate profit growth, and push share prices even lower, analysts warned.
"It's becoming more and more difficult as the market is now in panic mode," said Hugues Rialan of Robeco France.
"We're falling back into the crisis of confidence in the financial sector.
"The banks have been reassuring the market over their exposure to US mortgage-related investments, but now we realise there is nothing reassuring about it," he said.
Global trend
Markets in China, India, South Korea, Singapore, Taiwan and the Philippines all fell.
In Mumbai, the main Sensex index fell 1,408 points, or 7.4%, adding to an 8% fall last week. Hong Kong's Hang Seng slumped 1,383.0 points, or 5.5%, to close at 23,818.9,
Australia's benchmark ASX 200 index closed down 2.9%, or 166.9, points at 5,580.4, which is its lowest level for a year.
It was also the 11th consecutive negative day for the index, the longest losing streak in more than 25 years.
"People are certainly nervous about a potential recession in the US spilling over to the rest of the world," said David Cohen at Action Economics.
So far this year, Japan's Nikkei has dropped 13% percent, the Hang Seng is down more than 14%, and China's main Shanghai index has slipped almost 7%.
http://news.bbc.co.uk/2/hi/business/7199552.stm
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