Dow Jones index, which measures the performance of 30 major companies on the New York Stock Exchange opened down more than 1,000 points on Monday afternoon, according to US media . At worst, the index was down 6.42 percent, but jumped quickly up slightly again, and is located at 1550 currently 4.64 percent lower than before the weekend.
Technology index Nasdaq fell 8.76 percent from the start, but is in writing (a few minutes before the clock 16, Norwegian time) around 3.85 percent below Friday’s closing prices. Google is down 5.66 percent, Apple is down 6.17 percent.
Standard & amp; Poor’s 500 Index, representing the broad average of the stock market, down 4.11 percent.
Oslo least 117 billion
After nearly five hours of trading, at 14 time duration, there are few signs of improvement, and the main index and the “All-share ‘indices (consisting of all outstanding shares) fell by 6.17 percent. Oslo is thus among the exchanges that are hardest hit throughout Europe.
Oslo Stock Exchange shares were at that time about 117 billion worth less than when the exchange took weekend Friday afternoon.
After the New York Stock Exchange opened in 1530 Norwegian time, turned the Oslo Stock Exchange slightly up again and took back some of the lost. This may indicate that Norwegian investors had expected an even worse drop in the United States.
Thanks big stock market decline in China
Monday’s decline came after yet another Shock Day in the Asian markets. The benchmark index on the Shanghai Stock Exchange plunged 8.49 percent on Monday night, Norwegian time. 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.
The Chinese government has in recent months tried his luck with a series of measures to shore up the stock market decline. Among other things, they have recently released pension funds loose on the stock exchange, to get up demand for stocks. So far, investors have not been impressed.
While trade was in China on Monday morning, 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
– Looking at how quickly markets have fallen in recent days suggests much that there is an overreaction, says Paul Harper, equity strategist at DNB Markets to Aftenposten.
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 stock market 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 United States reacts 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 were 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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