After nearly five hours of trading, at 14 o’clock, there are few signs of improvement, the main index fell by 6.17 percent, and is thus among the exchanges that are hardest hit throughout Europe.
Oslo Stock Exchange shares have thus been approximately 117 billion worth less during these hours.
The fall comes after yet another Shock Day in the Asian markets.
Thanks big stock market decline in China
The main index on the Shanghai Stock Exchange plunged 8.49 percent Monday. The closing price of 3209.39 is lower than at New Year. Thus all progress in the first half wiped out by the sharp falls in the summer.
While trade was over in China, started trading in Europe. After over an hour of trade had CAC 40 index in Paris fell 2.6 percent, the FTSE 100 in London had fallen 2.4 percent and the DAX 30 in Frankfurt fell by 2.2 percent.
Also exchanges Copenhagen (- 3.2) and Stockholm (- 1.9) fell drastically during the first hour of trading.
– Panic in markets
– There is panic in markets. This starts to resemble the Asian financial crisis of the late 1990s, said lead researcher Takako Masai by Shinsei bank in Tokyo.
– Once again sold it away shares in Asia, and it spread fear in markets the rest of the world early in the week, said market analyst Craig Erlam.
Also Shenzhen index (- 7.7) which shows the development of China’s second largest stock exchange, fell sharply.
Tokyo ended the trading with a decline in the Nikkei 225 index of 4.6 percent. Among stocks that fell the most, was Toyota, which sank over 6 percent. Hang Seng index in Hong Kong fell 5.2 percent. On the stock exchange in Taipei fell shares by 7.5 percent.
– Suggesting an overreaction
– When one looks at how quickly markets have fallen in the last few days it seems that the is an overreaction, says Paul Harper, equity strategist at DNB Markets.
He explains that there are many who sell before they go deeper into the analysis of the market, and that historically see that there is a positive return on the exchange one month after this type of case.
– What happens in the Chinese stock market is not so important for the European markets, the stock exchanges in Europe and the US react to weak macroeconomic data from China, says Harper.
China’s economic growth is been slower in recent years, but there is still uncertainty about how quickly this deceleration will go. According equity strategist according to fresh figures from the Chinese economy that growth is not as high as the Chinese government’s goal.
Will Brake fall
The Chinese government has initiated a number of measures to prevent further decline after the sharp falls since the stock market peak in mid-June. But so far the measures have had limited effect.
– Now follow all the sort of measures the Chinese government and the central bank will come with, write analysts at Investec Economics in a note.
Oil prices was also low on Monday morning. American light oil was at times sold for under 40 dollars a barrel in Asian markets. North Sea oil dropped to $ 43.29 per. barrel.
Bloomberg commodity index, which follows the price of 22 commodities, fell 1.7 percent to the lowest quotation since August 1999.
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