Wall Street appears not to believe the $700bn rescue package is going to save the U.S. from recession, even if it does alleviate the credit crunch if the House of Representatives vote for it. The Senate passed it yesterday.
The Dow Jones Industrial Index closed 3.2% or 348 points to close at 10,482. The broader S&P 500 dropped even more with a 46.78 drop or 4% to 1,114. Traditional cyclical sectors, manufacturing, chemical production and mining industries fared worst. These typically are hit hardest by recessions.
The FTSE 100 fell 1.8%
In other news, the European Central Bank left interest rates at 4.25%.
Showing posts with label Dow Jones Industrial Average. Show all posts
Showing posts with label Dow Jones Industrial Average. Show all posts
Thursday, 2 October 2008
Thursday, 18 September 2008
Trading Today
The Dow Jones had a respite, closing 410 points or 3.86% on todays session. Standard & Poors 500 was up 4.1% as well. The good news did not extend to the FTSE 100 which saw a 0.7% drop.
There was no let up for the credit markets with a massive flow to Treasury bills, freezing the market for capital.
$180bn of loans from the Federal Reserve to other world central banks to improve money markets liquidity.
LIBOR, the rate at which banks loan money to each other is still very high.
UK banks were again in the spotlight. Now HBOS has been rescued, the wave of pessimism started on Bradford & Bingley. In the US Morgan Stanley was under the Microscope for its possible tie-up with Wachovia.
The FSA implemented its restrictions on short-selling of financial firms.
There was no let up for the credit markets with a massive flow to Treasury bills, freezing the market for capital.
$180bn of loans from the Federal Reserve to other world central banks to improve money markets liquidity.
LIBOR, the rate at which banks loan money to each other is still very high.
UK banks were again in the spotlight. Now HBOS has been rescued, the wave of pessimism started on Bradford & Bingley. In the US Morgan Stanley was under the Microscope for its possible tie-up with Wachovia.
The FSA implemented its restrictions on short-selling of financial firms.
Monday, 15 September 2008
New York Plunge Worst Since September 11 Attacks
The continuing turmoil in the financial markets has caused the New York to have its worst day since the 2001 terrorist attacks. The Dow Jones Industrial average dropped 504.48 points during the day. The S&P 500 index lost 4.7%. The biggest losers on the were banks and other financial institutions.
Europe, fared similarly with the Flagship FTSE off nearly 4%.
Treasury secretary, Henry M. Paulson Jr., commented “as we work off some of the past excesses,” but that Americans could “remain confident in the soundness and the resilience of our financial system.”
“Let me step back a bit and provide a little perspective,” Mr. Paulson said. “As I’ve long said, the housing correction is at the root of the challenges facing our markets and our financial institutions. I believe that we’ve taken very important steps with respect to Fannie Mae and Freddie Mac, and they’re amongst the most important actions we can take to work through this turmoil.”
Lehman Brothers, led the way seeing their shares drop 95% to 21 cents, on the way to declaring bankruptcy. AIG dropped to $4.76 or 65%. A promise of help from the Federal Reserve helped matters.
Europe, fared similarly with the Flagship FTSE off nearly 4%.
Treasury secretary, Henry M. Paulson Jr., commented “as we work off some of the past excesses,” but that Americans could “remain confident in the soundness and the resilience of our financial system.”
“Let me step back a bit and provide a little perspective,” Mr. Paulson said. “As I’ve long said, the housing correction is at the root of the challenges facing our markets and our financial institutions. I believe that we’ve taken very important steps with respect to Fannie Mae and Freddie Mac, and they’re amongst the most important actions we can take to work through this turmoil.”
Lehman Brothers, led the way seeing their shares drop 95% to 21 cents, on the way to declaring bankruptcy. AIG dropped to $4.76 or 65%. A promise of help from the Federal Reserve helped matters.
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