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Log inGlobal stocks slide anew, dollar sets 2-year high
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Global stocks slide anew, dollar sets 2-year high
by Outspoken on Wed Oct 22, 2008 6:16 am
Global stocks slide anew, dollar sets 2-year high
By Mike Dolan
Reuters News Service
LONDON (Reuters) – Stock markets around the world fell sharply again on Wednesday after concerns about economic recession and falling commodity prices were fueled by a fresh spate of gloomy corporate earnings.
Emerging markets were hardest hit by the global retreat and the fresh commodity pressure, with the U.S. dollar and government bonds the big gainers.
MSCI's main index of emerging equities fell some 4.5 percent to its lowest level since June 2005, sharply underperforming the 2.45 percent loss in MSCI's index of world stock markets.
Global miner BHP Billiton warned on Wednesday that Chinese demand was set to weaken, echoing concerns last week from rival and takeover target Rio Tinto.
China said on Monday its annual economic growth fell to 9 percent in the third quarter from 10.1 percent previously and that factory output in September was at a six-year low.
"There is an increase in risk aversion. The emerging market world appears to be starting to collapse; that means it'll be much more difficult for the global economy to recover," said Peter Mueller, rates strategist at Commerzbank in Frankfurt.
Commodity price losses mounted everywhere. U.S. crude oil futures fell under $70 per barrel and London copper futures were down almost 4 percent to their weakest since December 2005.
The commodity slide and emerging markets retreat all helped boost the U.S. dollar to two year highs, while gold prices fell to their lowest in over a month.
http://news.yahoo.com/s/nm/20081022/ts_nm/us_markets_global
By Mike Dolan
Reuters News Service
LONDON (Reuters) – Stock markets around the world fell sharply again on Wednesday after concerns about economic recession and falling commodity prices were fueled by a fresh spate of gloomy corporate earnings.
Emerging markets were hardest hit by the global retreat and the fresh commodity pressure, with the U.S. dollar and government bonds the big gainers.
MSCI's main index of emerging equities fell some 4.5 percent to its lowest level since June 2005, sharply underperforming the 2.45 percent loss in MSCI's index of world stock markets.
Global miner BHP Billiton warned on Wednesday that Chinese demand was set to weaken, echoing concerns last week from rival and takeover target Rio Tinto.
China said on Monday its annual economic growth fell to 9 percent in the third quarter from 10.1 percent previously and that factory output in September was at a six-year low.
"There is an increase in risk aversion. The emerging market world appears to be starting to collapse; that means it'll be much more difficult for the global economy to recover," said Peter Mueller, rates strategist at Commerzbank in Frankfurt.
Commodity price losses mounted everywhere. U.S. crude oil futures fell under $70 per barrel and London copper futures were down almost 4 percent to their weakest since December 2005.
The commodity slide and emerging markets retreat all helped boost the U.S. dollar to two year highs, while gold prices fell to their lowest in over a month.
http://news.yahoo.com/s/nm/20081022/ts_nm/us_markets_global
"Music is a moral law. It gives soul to the universe, wings to the mind, flight to the imagination, and charm and gaiety to life and to everything."
Plato (427-347 BC)
Plato (427-347 BC)
