Dow, Nasdaq Recover from 8% Loss

123jump.com Staff
06 Oct, 2008
New York City

The U.S. benchmark indexes plunge 8% at their lowest before recovering to 3.6% loss. Interbank and short term lending rates remain elevated. The crisis of confidence hit retailers, financials and mining stocks the hardest. European markets dive 7% and emerging markets decline between 4% and 19%.

4:30PM New York, 10:30AM Frankfurt, 6:30AM Sydney[R]– Crisis of confidence ruled the stock markets trading around the world. The U.S. bailout plan will inflict higher inflation around the world. European markets plunged after Germany was forced to prop up the second largest real estate lender.[/R]

Global Markets

The Dow Jones index dropped below 10,000 for the first time since October 2004. The Nasdaq and S&P indexes declined nearly 4%. Benchmark indexes in Russia, Brazil, Mexico and Indonesia plunged more than 10%. European markets plunged 7%. Metals and mining companies in New York, Peru, London and Toronto dropped between 10% and 15%.

European markets closed sharply lower after Fortis was seized in Holland and its operations in Belgium and Luxembourg were sold to BNP Paribas. The French based bank agreed to pay $14.5 billion for its banking and insurance operations.

Euro dropped 1.7% against the dollar as credit market crisis spreads to Europe.

Emerging markets plunged around the world, with market index in Russia dived 19%, in Brazil plunged at its lowest 15%, in Saudi Arabia, Indonesia dropped 10% and in Turkey and Canada decline 7%. Markets in India and China drop more than 5%.

Hartford Financial receives capital infusion from Allianz SE. MetLife, Prudential and Principal Financial Group dive. Metals and mining companies fall sharply. American Express, Visa and MasterCard drop. eBay cuts 1,600 staff and takes a charge. Gannett Drops to a new low.

Stocks nosedived in London trading. UK benchmark index dropped the most in one-day in last seven years. Mining, financials and energy related stocks declined between 10% and 15%. The Bank of England plans to offer £40 billion. Royal Bank of Scotland drops 21% and Xstrata dive 19%.

North American Markets

Dow Jones Industrial Average fell 369.88 or 3.6% to a close of 9,955.50, S&P 500 Index closed down 42.34 or 3.85% to 1,056.89, and Nasdaq Composite Index down 84.43 or 4.4% to close at 1,862.96. In Toronto TSX Composite closed down 572.92 or 5.30% to 10,230.43.

Of the 30 stocks in Dow Jones Industrial Average none closed higher and 30 closed lower.

Bank of America led decliners in the index with a fall of 6.6% followed by losses in Alcoa Inc of 5.8%, in General Motors of 5.8%, in Merck & Company of 5.5%, in Microsoft of 5.4% and in Citigroup of 5.2%.

Of the stocks in S&P 500 index, 48 increased, 452 declined and none were unchanged. Of the index stocks, 13 rose more than 3% and 319 fell more than 3%. And 24 stocks plunged more than 10%.

Apartment Investment led gainers in the S&P 500 index with a rise of 13% followed by gains in Hartford Financial Services of 13%, in CME Group Inc of 11.5%, in Office Depot Inc of 11%, in Monster Worldwide of 6%, in MetLife of 5.2%, in T Rowe Price Group of 4.6% and in MasterCard International of 4.5%.

National City led the decliners in the S&P 500 index with a plunge of 27% followed by losses in General Growth Properties of 19.9%, in Janus Capital of 15%, in Lincoln National Corp of 14%, in Nvidia Corp of 13.1% and in Range Resources of 13%.

South American Markets Indexes

Peru led decliners in the region with a fall of 9.3% followed by decrease in Chile of 6% in Argentina of 5.9%, in Brazil and Mexico of 5.4% and in Colombia of 4.9%.

Venezuela dropped 0.31%.

Europe Markets Review

In London FTSE 100 Index closed lower 391.10 or 7.85% to 4,589.20, in Paris CAC 40 Index decreased 368.77 or 9.04% to close at 3,711.98 and in Frankfurt DAX index lower 410.02 or 7.07% to close at 5,387.01. In Zurich trading SMI decreased 421.10 or 6.12% to close at 6,458.72.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 465.05 or 4.25% to 10,473.09 , Hang Seng index in Hong Kong decreased 878.64 or 4.97% closed to 16,803.76. CSI 300 index in China lower 114.96 or 5.12% closed to 2,128.70. ASX 200 index in Australia decreased 155.00 or 3.30% to close 4,540.40. The KL Composite index in Malaysia lower 19.86 or 1.95% closed to 996.84.

The Kospi Index in South Korea decreased 60.90 or 4.29% to close at 1,358.75, SET index in Thailand closed lower 38.25 or 6.48% to 551.80, and JSE Index in Indonesia decreased 183.77 or 10.03% to 1,648.74. The Sensex index in India decreased 724.62 or 5.78% closed to 11,801.70.

Commodities, Metals, and Currencies

Crude oil decreased $5.20 to close at $88.68 a barrel for a front month contract, natural gas decreased 48 cent to $6.88 per mBtu and gasoline futures decreased 14.23 cents to close at 208.60 cents per gallon.

Wheat futures closed down 45 cents in Chicago trading and closed at $5.9525 a bushel. Sugar decreased 0.82 cent to 11.79 cents a pound. Soybean future closed down 70 cents to $9.22 a bushel.

Gold increased $34.40 in New York trading to close at $867.60 per ounce, silver closed up $0.14 cents to $11.26 per ounce and copper for the front month delivery decreased 25 cent to $2.43 per pound.

Dollar edged higher against euro to $1.3524 and lost against yen to 101.88.

Yields on 10-year U.S. bonds decreased to 3.47% and wit 30-year maturities declined to 3.99%.