World Stocks Dive; HK, Philippines Plunge

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

World markets slide after investors sold banking and resource stocks. Dollar and yen continue to rise against international currencies. Resource stocks fall in New York, Toronto, London and South America. Crude oil and metals prices drop to 3-year low.

[R]10:20AM New York – Asian markets plunge. The dollar and Japanese yen gain. Resource stocks in Europe and in the U.S. trading continue their slide.[/R]

World markets continue to slide to the lowest level seen in the last five years. The weak communication from Group of Seven meeting and a surge in yen dragged markets lower in Asia.

In the overnight trading Philippines and Hong Kong market dived more than 12%.

The U.S. leaders appear to react to widening slowdown across the economy and industries are after industries line up for bailout money. Insurance companies and regional banks are looking for their share of bailout funds from the Treasury and GM and Chrysler are seeking federal aid in the event if they decide to merge.

The Bush administration’s policy of hands-off regulation that are rooted in President Regan era have come back to haunt the U.S. financial system and damage has spread around the world.

Crude oil futures dropped below $63 a barrel and gold declined $10.40 to $719.90. Wholesale gasoline futures dropped below $1.50 a gallon and copper declined 2 cents to $1.6675 a pound in New York trading.

In the early trading resource and energy stocks fell as metals and energy prices continue their slides. Freeport McMoran((FCX)), ArcelorMittal ((MT)), U.S. Steel and Nucor dropped. Peabody Energy, Massey Energy and Fording Canadian Coal ((FDG)) dropped.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 486.18 or 6.36% to 7,162.90, Hang Seng index in Hong Kong decreased 1,602.54 or 12.70% closed to 11,015.84. CSI 300 index in China lower 126.93 or 7.12% closed to 1,654.67. ASX 200 index in Australia decreased 60.20 or 1.56% to close 3,809.20. Markets in Malaysia were closed today.

The Kospi Index in South Korea increased 7.70 or 0.82% to close at 946.45. SET index in Thailand closed lower 45.44 or 10.50% to 387.43 and JSE Index in Indonesia decreased 78.46 or 6.30% to 1,166.41. The Sensex index in India decreased 191.51 or 2.20% closed to 8,509.56.

Europe Markets Review

In London FTSE 100 Index traded lower 189.40 or 4.88% to 3,693.96, in Paris CAC 40 Index decreased 197.92 or 6.20% to 2,995.87 and in Frankfurt DAX index traded lower 149.89 or 3.49% to 4,145.78. In Zurich trading SMI decreased 262.27 or 4.62% to 5,412.82.