Thursday, November 6, 2008
Sell, Sell, Sell!!!
The press continues to sniff Obama's saintly arse with this article on why the markets tanked yesterday. Because the market decline COULDN'T have something to do with a collectivist getting elected could it? No. It's "recession fears".
World stocks plunge as recession fears bite
Global stock markets tumbled for a second day running on Thursday as investors shrugged off Barack Obama's election as US president to focus on growing recession fears, traders said.
Europe's main markets were up to four percent lower in late morning trade after Asia saw losses of around seven percent. Wall Street shed five percent overnight and on Thursday there were also sharp losses for Nordic and Gulf share prices.
"The honeymoon period for president-elect Obama is already proving extremely short-lived, with the run of grim US economic data (on Wednesday) highlighting the mammoth task ahead in terms of getting the economy back on its feet," said Mitul Kotecha, an analyst at Calyon investment group.
"As attention turns from credit problems to economic concerns, any improvement in risk appetite will be limited, as seen in the sharp pull back" in equity markets, Kotecha added.
Investors in Europe were gearing up for interest-rate decisions from the European Central Bank and Bank of England later on Thursday, with both widely expected to slash key lending rates by half a percentage point.
"The ECB and BoE rate verdicts do have the potential to provide some cheer, especially if the cuts end up at the more aggressive end of the spectrum," said CMC Markets dealer Matt Buckland.
Some economists say the Bank of England may to reduce its key lending rate by as much as one percentage point. The BoE decision is due at 1200 GMT with the ECB call 45 minutes later.
"What is clear beyond what takes place today (Thursday) is that further substantial monetary easing will be required globally," said Derek Halpenny, an analyst at The Bank of Tokyo-Mitsubishi in London.
"Tomorrow's employment report from the US may well remind markets of the potential scale of the slowdown coming."
Yep. It's not the commie.