Stock Markets Tumble Worldwide

[george]

Stock markets tumble worldwide

The stock market tumbled worldwide Monday Monday as the aftershocks of last week's global sell-off continued to rattle investors, dealers said.

Hong Kong share prices tumbled Monday, shedding 4.0 per cent, following big drops on Wall Street and in Tokyo and on fears new restraints will be placed on the Chinese economy, dealers said.

The benchmark Hang Seng Index (HSI) closed down 777.13 points at 18,664.88, just off the day's low of 18,659.23 and after a high of 19,164.35. The index has fallen more than 2,000 points since early last week.

In Shanghai, Chinese share prices fell 1.63 per cent amid volatile trade Monday after Chinese Premier Wen Jiabao's eight per cent economic growth target set for 2007 failed to boost the market, dealers said.

Wen set the target in an opening speech of the annual session of the National People's Congress, China's parliament, but it did little to alleviate renewed pressure on steel and financial stocks, they said.

The benchmark Shanghai Composite Index, which covers A and B-shares, fell 46.22 points to 2,785.31.

The Shanghai A-share Index was down 47.36 points or 1.59 per cent to 2,926.60 and the Shenzhen A-share Index fell 3.26 points or 0.43 per cent at 757.39.

In Tokyo, Japanese share prices slumped by 3.34 per cent on Monday, closing at the lowest level for over two months on concerns about the health of global markets and a stronger yen, dealers said.

They said exporter shares suffered after the dollar sank to near three-month lows against the yen, adding to nervousness over fresh losses seen on Wall Street on Friday.

The Tokyo Stock Exchange's benchmark Nikkei-225 index of leading shares fell by 575.68 points to 16,642.25, the lowest close since December 12.

In Sydney, Australian share prices closed down 2.29 per cent.

The SP/ASX 200 closed down 132.4 points at 5,653.6, while the broader All Ordinaries index dropped 132.8 points to 5,642.4.

Meanwhile in Taipei, Taiwan share prices closed sharply lower, falling 3.74 per cent, Monday amid market weakness across the region.

Dealers said the market also took a turn for the worse after President Chen Shui-bian said Taiwan needs formal independence from mainland China and a new constitution, sparking fresh worries over cross-strait relations.

The weighted index closed down 285.59 points at 7,344.56, after moving between 7,306.07 and 7,565.95, on turnover of 131.66 billion Taiwan dollars (4.0 billion US).

In Manila, Philippine share prices closed 4.54 per cent lower after uncertainty in worldwide equity markets sparked another round of broad-based selling, dealers said.

They said Manila tracked the weakness in global markets after Wall Street tumbled again Friday following a selloff triggered by worries over the US and Chinese economies.

The composite index slumped 142.46 points to settle at 2,997.88, its lowest level in nearly two months. It moved between 2,972.97 and 3,100.34.

The broader all-share index plunged 91.48 points to 1,925.32.

In Seoul, South Korean share prices closed sharply lower Monday in line with other Asian markets as foreign investors aggressively cut their positions in both spots and futures, dealers said.

They said sentiment was soured by lingering concerns over the US economy and the direction of global equity markets, coupled with investor caution before the Bank of Korea's rate decision and triple-witching Thursday.

The KOSPI index ended down 38.32 points or 2.71 per cent at 1,376.15, marking the largest per centage decline since last June's 2.90 per cent. The low for the day was 1,375.84 and the high was 1,404.34.

Steep losses in regional markets, especially in Tokyo shares, added to downward pressure, dealers said.

Declines were broad, with steelmakers, builders and insurers hit hard.

Volume was 228 million shares worth 3.2 trillion won (3.36 billion dollars).

Meanwhile, European stock markets fell sharply in early trading on Monday following a heavy setback in Asia earlier in the day as volatile trading on world markets continued into a second week.

In London, the FTSE 100 opened with a fall of 1.49 per cent to 6,024.90 points, in Paris the CAC 40 shed 1.84 per cent to 5,325.14 points and in Frankfurt the DAX lost 1.40 per cent to 6,510.95 points.

--AFP 2007-03-05

[GuestHouse]

I'm deafened by the silence of all those who until a last week were telling us how they were making such a bundle on the stock market.....

Que the statement - "But I had an automatic sell at a low cut off to prevent me loosing too much"

And who did you sell to?

[george]

Analysis/Update:

Global share sell off: the calm before the storm?

With the warning lights flashing over the world economic outlook, the global stock exchanges sell off entered another week Monday triggering further steep falls in European shares and dramatically reshaping expectations about key financial markets in the coming months.

Picking up the gloomy trend in Asian stock markets, leading European markets marked the start of the new trading week by sinking by about two per cent with bourses in Eastern Europe and high-tech stocks in particular taking a hammering as investors dumped stocks perceived to be risky.

"I sense this is an overdue assessment of risk," said Kenneth Wattret, BNP Paribas' chief eurozone economist. "The momentum looks strongly downward," he said with the Eurostoxx 50, a leading stocks indicators for the 13-member slumping by almost two per cent in early afternoon trading Monday.

After already wiping out gains chalked up since the end of last year, bourses in London, Frankfurt, Paris, Milan and Zurich were down in trading Monday as worries grew that the upheaval in stocks could hit another markets, notably currencies, which have so far managed to remain on the sidelines of the sell off in stocks.

But highlighting the alarm about emerging markets which has set in among investors, bourses from Warsaw to Moscow and through to Istanbul and Cairo took an even bigger pounding Monday.

While Warsaw, which is seen as leading bourse in Central Europe, dropped by a hefty 3.83 per cent in early afternoon trading, Moscow fell by more than five per cent and the Vienna exchange, which is home to many companies with big investments in Central Europe, lost about two per cent. Likewise, Istanbul was off more than three per cent.

In the meantime, Frankfurt's TecDax, a leading European high-tech index cascaded down by more than four per cent with some stocks listed on the exchange falling by more than eight per cent as the negative market mood continued to gain ground.

Triggered by a plunge in the Shanghai bourse, the five-straight days of plummeting share markets have also helped to underscore growing concerns about the prospects for the key US housing market and prompted a change in market sentiment towards the world interest rate outlook.

Indeed, the shakeout in global bourses comes in the run-up to a meeting Thursday of the European Central Bank, when the ECB is expected to deliver its seventh interest rate hike since December 2005.

But while analysts believe that a 25-basis points increase in eurozone borrowing costs on Thursday is a done deal, going forward the equity market shakeout now means that many analysts are now far less certain about ECB's next rate move.

This means that a major focus of the markets this week is likely to be the regular monthly press conference on Thursday by ECB chief Jean-Claude Trichet with analysts picking over his comments for pointers as to how the eurozone central bank is sizing up the economic fall from the stock market rout.

Similarly, many analysts believe that with world stock markets tanking and worries deepening about the performance of the giant American economy in the coming months that the US Federal Reserve could move to loosen monetary policy.

Economists have warned for some time that the global economy's expansion rate was likely to slip back a gear in the coming months as US economic growth cooled.

As a result, with uncertainty growing about the performance of the US economy this year, a key test of both the prospects for equities and the American economic outlook is likely to come Friday with the release of the latest US payrolls data.

While a strong payrolls figure might be expected to give the nerve-wracked stock markets a breather, a weaker-than-forecast number could send the alarm bells ringing among investors and economists that the fragile housing market has had a knock-on effect on the American labour market.

This in turn could set off a chain reaction in markets, sending shares nose diving again, rattling the dollar and sending ripples across global currency trading.

Consequently, the last five days of falling share prices could even end up being the calm before the storm.

What is more, some analysts say that considering the skittish state of investors even a strong payrolls figure on Friday could have a negative impact on market sentiment, resulting in a new round of stock exchange volatility as investors and analysts start fretting about the US inflation outlook.

Concerns about a pickup in US inflation would prompt worries of the US Federal Reverse raising interest rates again and as a consequence undercutting the attractiveness of share markets.

--DPA/Agencies 2007-03-05

[steveromagnino]

I'm deafened by the silence of all those who until a last week were telling us how they were making such a bundle on the stock market.....

Que the statement - "But I had an automatic sell at a low cut off to prevent me loosing too much"

And who did you sell to?

I only invest in shipping shares.

Check out PSL, RCL, TTA. if anything sold out a bit early.

I keep all my eggs in one basket...but man i watch that basket closely. Almost completely lquid now though; bought PSL at just a touch under 30b; RCL at about 19. Within last 12 months. Cyclical shares.

[PeaceBlondie]

My best friend started investing in Chinese stocks 9 months ago. He wrote me yesterday that, in spite of the losses on Friday, he's up 35% so far. Amazing. My euro fund is down from its high, but still doing well at 3.5 months, considering.

[PCA]

Some sour truth for stock-market illusionists and the way it works these days.

http://onlinejournal.com/artman/publish/article_1811.shtml

[warriors]

As I said before Uranium stocks Palidine was $9. 60 Ausy dropped to $7.80 now back up to $ 8.19 but in the end I got mine for 1 cent 6 years ago. Like all stocks pick good ones and Hold HOLD HOLD

My total portfolio dropped $30,000 now only $10,000 and I didn't lose any sleep over it. It was only a 1.5% decline in the total portfolio.

So i am happy to still talk about shares I am not quite.

[johnnyk]

Start buying now and average out your buys.

Danger and opportunity....

[Phil Conners]

A quote I remember from the late nineties: "Don't try to catch a falling knife".

Doesn't look too bad today, most indices are green.... but will it last?