| Forum Home | | Log in | | Signup | | My Page  | |
Rules | | FAQ | | Boards | | Members | | Search |
|
|
|
||||||||||||||||||||||||||
| The above list shows replies to the following message: |
|
Msg. 33065 of 65535 |
|
Stocks Tumble Worldwide After Obama Speech By Shiyin Chen and Stuart Wallace - Sep 9, 2011 6:21 AM ET Stocks fell worldwide for a second day and the yield on Germany’s two-year note declined to a record after President Barack Obama detailed his $447 billion plan to boost hiring in the U.S. Oil dropped for a second day. The MSCI All-Country World Index retreated 0.8 percent at 6:18 a.m. in New York. Standard & Poor’s 500 Index futures slipped 0.4 percent after earlier climbing as much as 0.7 percent. The yield on the German two-year note yield slumped to less than 0.4 percent for the first time. The Swedish krona strengthened against all but two of its 16 major peers tracked by Bloomberg. Oil fell 1.6 percent. Obama called on Congress to pass his package after jobs growth stalled last month, fueling concern the U.S. recovery is faltering. Federal Reserve Chairman Ben S. Bernanke yesterday stopped short of detailing new plans to boost growth, while European Central Bank President Jean-Claude Trichet said “downside risks” for the region’s economies have risen. Ministers from the Group of Seven nations will meet in Marseille, France, amid mounting bets on a Greek default.
“The economic situation is getting worse,” said Markus Steinbeis, head of equity portfolio management at the Unterfoehring, Germany-based unit of Pioneer Investments KGmbH, which oversees about $221 billion. “It depends more than ever on what policy makers will do. As long as economic indicators remain as they are right now and emerging markets are tightening their monetary policies, the upside should be limited.” Pending Lawsuits The Stoxx Europe 600 Index lost 1 percent, extending this week’s retreat to 2 percent. Porsche SE tumbled 9.9 percent after Volkswagen AG said it will no longer complete its merger with the sports-car maker by the end of the year because of pending lawsuits. Verbund AG, Austria’s biggest power company, sank 8.9 percent after cutting its guidance for 2011. The cost of insuring Porsche debt jumped 38 basis points to 235, according to CMA prices for credit-default swaps, the highest since July 2009. The drop in S&P 500 futures indicated the benchmark gauge for U.S. equities will trim this week’s 1 percent advance. The Dollar Index, which tracks the U.S. currency against those of six trading partners, rose 0.4 percent. The yield on the 10-year Treasury note rose one basis point to 1.99 percent. The krona appreciated 0.5 percent against the euro. Swedish industrial production rebounded more than expected in July, signaling an expansion in the largest Nordic economy may be stronger than anticipated in the third quarter. Euro Slips The euro slipped 0.4 percent to $1.3824, on course for its biggest weekly decline since May. The yield on the two-year German note dropped to as low as 0.385 percent, with the 10-year bund yield sliding to 1.812 percent, also the lowest on record. Greek two-year note yields added as much as 79 basis points to 55.84 percent, a euro-era record. Credit-default swaps insuring Greek sovereign bonds jumped 212 basis points to a record 3,238, according to CMA. The five-year contracts signal there’s a 92 percent probability the country won’t meet its debt commitments. The cost of insuring sovereign debt gained, with the Markit iTraxx SovX Western Europe Index of credit swaps on 15 governments up one basis point at 323. The Markit iTraxx Financial Index of swaps on 25 banks and insurers rose seven basis points to 271, near the closing record of 273 on Sept. 6. Oil retreated to $87.65 a barrel in New York. Copper for delivery in three months on the London Metal Exchange dropped 1.7 percent, falling for the first time in three days. Aluminum, nickel and zinc also weakened. Hungary, Poland The MSCI Emerging Markets Index fell 1.1 percent, dropping for the first time in three days. OTP Bank Nyrt. led Hungary’s BUX Index 3.6 percent lower after the ruling party proposed letting foreign-currency borrowers repay loans early at a fixed rate with banks covering costs. Lenders helped drag Poland’s WIG20 Index down 3.2 percent as the zloty weakened against the Swiss franc, fueling concern borrowers with foreign-currency loans will default. The Shanghai Composite Index slipped less than 0.1 percent, erasing gains of as much as 1.2 percent, after China’s industrial output growth trailed estimates.
To contact the reporter on this story: Shiyin Chen in Singapore at schen37@bloomberg.net Stuart Wallace in London at swallace6@bloomberg.net  DO SOMETHING! |
|
|
|
|
|
|
© Webpage Design Copyright 2003-2011 http://www.atomicbobs.com/
|