Return to ads
All categories
Stock Market Crash World Recession

Stock Market Crash World Recession

Posted by
Posting ads for 51 years

World stocks tumble down

The US market was closed overnight but other stock markets around the world tumbled leaving local investors to take their cue from Europe and Asia.

It is the largest one-day fall since 9/11 and makes for a 12th weak session in a row - the longest losing streak in the market since January 1982.

Asian bourses were also softer, with Japan's benchmark Nikkei share average index down 4.8 per cent and the boarder TOPIX index down 4.6 per cent.

The All Ords index has fallen by over 20 per cent since its intraday peak on November 1 last year.

As a rule of thumb, that indicates the market has entered a bearish phase, after years of a bull run.
According to early figures, the market has now lost $237.3 billion in value since its peak in November, and is off about $135.7 billion for the year so far.

Financial markets are under pressure amid fears that the US economy is entering a recession, and depress global growth.

The Australian futures market pointed to a 3 per cent drop in local shares, after falling 2.9 per cent yesterday.

"Aussie stocks are set for their largest one day fall since 9/11," Martin Slaney, head of derivatives trading at GFT Global Markets in London said.

"There is a wave of panic emerging as the fear unfolds."

ABN Amro Morgans Ipswich manager Tony Russell said the local market was being dragged down by a raft of negative sentiment.

"Once again we've had some commentary coming out of Europe on concerns on their economy slowing down and further concerns of the US economy going into recession. "

"At the moment we've got a raft of negative sentiment out there.''

Mr Russell said he expects volatility to persist for some time, but that the market should bounce back in the short term.

"Once people start focusing on the solution to this and not the problems, and the solution being taken by the various central banks and the US Federal Reserve on interest rate movement, it will start to stimulate a bit more confidence back into the economy and we'll settle down. "

"Volatility will remain, but we'll certainly see some bounce in it in the short term.''

'Blood on the floor'

Austock Securities client adviser and strategist Michael Heffernan said there was "blood on the floor'' with the market falling three per cent in the first few minutes of trade.

"I think the blood bank is trawling all broker's floors to recover the blood,'' he said.

"We are all feeling what it would be like to do fifteen rounds with Mike Tyson but in reality there are some great stocks at fantastic value.''

Mr Heffernan said sooner or later the market would come back.

"While it will finish down today, sooner or later investors are going to see the value in good stocks and I say they are great value. So investors should never look back.''

The London Stock Exchange lost 5.48 per cent - its largest one-day loss since the September 2001 terrorist attacks in the US, on fears of a recession in the world's biggest economy.

The German exchange lost 7.16 per cent and while French stocks fell 6.83 per cent
Reply to this ad
Recently viewed ads
Saved ads
Please log in to browse your saved adverts or sign up if you don't have an account yet.
Popular Stuff