Here We Go Again

by Dollars and Sense

From today's International Herald Tribune

Stocks hammered again in Europe and Asia

By David Jolly and Bettina Wassener

Monday, October 27, 2008
PARIS: Stock markets shuddered Monday in Europe and Asia, with Japanese stocks falling to their lowest level since 1982, as the sell-off that has erased more than 51 percent of the value of global equities this year showed no signs of abating.


Currency market traders were keeping nervous watch for central bank intervention, after Group of 7 finance and monetary officials expressed noted concern about the strength of the yen.


"We are concerned about the recent excessive volatility in the exchange rate of the yen and its possible adverse implications for economic and financial stability," the G-7 statement said. "We continue to monitor markets closely, and cooperate as appropriate."


Bilal Hafeez, global head of currency strategy at Deutsche Bank in London, said any intervention would probably take the form of central banks selling yen and buying dollars and euros.


"The yen is the real standout currency at the moment," Hafeez said, "and that's what the authorities want to address."


In early trading, the DJ Euro Stoxx 50 index, a barometer of euro zone blue chips, fell 5.9 percent, while the FTSE 100 index in London fell 5.4 percent. The CAC 40 in Paris fell 5.9 percent, and the DAX in Frankfurt fell 4.7 percent.


Trading in U.S. index futures suggested Wall Street stocks would fall about 4 percent at the start of trading in New York.

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Labels: financial crisis

 

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10/27/2008 07:36:00 AM