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Thread: Asian, European Markets plunge on opening Friday

  1. #1
    Friend of Gossip Rocks! buttmunch's Avatar
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    Oct 2005

    Default Asian, European Markets plunge on opening Friday

    (CNN) -- European and Asian stocks fell sharply in response to the Dow's third biggest one-day point-loss as finance ministers from the G7 leading industrial countries were due to meet in Washington Friday to discuss the current economic crisis.

    London's FTSE, the CAC in Paris and the XETRA DAX in Frankfurt, Germany were all down 10 percent at one stage before making a slight recovery.

    Meanwhile, The Associated Press reported that Russian stock exchanges postponed trading Friday morning following the massive selloffs on Wall Street and in Asian markets.

    Representatives of the MICEX and RTS exchanges said they suspended regular trading until further notice under orders from financial regulators. Limited trading and repo auctions were allowed.

    In Asia, Japan's Nikkei Exchange closed down 9.6 percent, as the Bank of Japan injected 4.5 trillion yen ($45 billion) into financial markets -- the largest single-day amount in history.

    Meanwhile, the Australian All Ordinaries index closed more than 8 percent lower, and South Korea's KOSPI index finished the day off 4.3 percent.

    Hong Kong's Hang Seng index and Mumbai's BSE SENSEX both were down 8 percent in afternoon trading.

    India's central bank also tried to boost markets, making 400 billion rupees ($8.2 billion) available for the financial system. Video Watch panic-selling in the Asia markets

    The Dow Jones industrial average lost 679 points, or 7.3 percent, on Thursday, closing at its lowest point since May 21, 2003. It was the Dow's third biggest one-day point-loss ever.

    The Standard & Poor's 500 index lost 7.6 percent and closed at its lowest point since April 28, 2003. The Nasdaq composite lost 5.5 percent and closed at its lowest point since June 30, 2003.

    During the past seven sessions, the Dow has lost 2,271 points, or 20.1 percent. Since hitting an all-time high of 14,164.53 one year ago Thursday, the Dow has lost 39.4 percent.

    The White House confirmed earlier Thursday that the U.S. Treasury Department is looking at buying equity stakes in some U.S. banks.

    Spokesperson Dana Perino confirmed reports that the U.S. could soon join the United Kingdom, Iceland and Italy in announcing a plan to inject capital directly into their troubled banking systems.

    "These capital injections are something that Secretary (Henry) Paulson is actively considering," said Perino. She said she could not comment on the timing or extent of such investments.

    The move would be made under the $700 billion Wall Street bailout passed by Congress on Friday.

    But the possibility of Treasury intervention failed to reassure investors amid the ongoing credit crisis.

    Asian central banks also did their part to give markets a potential boost. South Korea's central bank -- the Bank of Korea -- slashed its key interest rate by a quarter percent, the Yonhap news agency reported. The Bank of Japan injected 2 trillion yen ($20 billion) into money markets. And the Hong Kong Monetary Authority cut its key interest rate again -- 1.5 percent during two days.

    European markets posted mixed results Thursday, but the continent's most influential -- London, Paris and Frankfurt -- all closed 1 percent to 2 percent lower.

    Russia's battered stock markets rebounded Thursday after financial regulators reversed a decision to close them, so vigorously that one exchange had to be temporarily closed.

    The index of leading stocks on the MICEX exchange, where most of Russia's trading takes place, gained nearly 16 percent before halting trading around midday, the second time in less than three hours of action that it suspended activity.European markets fall; Asia plunges -
    I was watching BBC when the markets opened and the woman literally gasped when the Japanese market suddenly dived 300 points in a few seconds. She was shocked and so was I. I'm morbidly curious as to where this will all end.
    'Those who sacrifice liberty for security deserve neither.' Ben Franklin

    "When fascism comes to America, it will be wrapped in the flag and carrying the cross."
    --Sinclair Lewis

  2. #2
    Elite Member ana-mish-ana's Avatar
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    Feb 2008


    I watched a bit of the news earlier and the FTSE has dropped to 3999 points although its trying to above the 4 thousand mark - they are waiting for the US markets to open. I think its going to get worse

  3. #3
    Elite Member effie2's Avatar
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    Jul 2006
    Where it all begun


    Οurs is down to 7% so far,,,damn.
    "Effie is all kinds of awesome." - Some internet moderator

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