Tuesday, November 18th, 2008
With the Eurozone and Japan in recession, Citigroup announcing a cut of 50,000 jobs, all the ingredients were there for US stock markets to close lower. And they did. Concern about the World economy after the credit crunch still remains high. The Dow Jones Industrial Average dropped almost 224 points, and Citigroup shares lost almost 7% of their value after the layoffs news was released. General Motors was up 5.7% due to new cash raising efforts, including the sale of a 3% stake in Suzuki Motor Corp.
U.S. stocks started the week solidly at a loss Monday, with word of Citigroup Inc. slashing 50,000 jobs and Japan slipping into recession heightening worries about the severity of the global slowdown.
“Investors continue to worry about the near-term fundamental weakness of the global economy and the continued need for capital by banks, brokers and now insurance companies and automakers,” said Robert Pavlik, chief investment officer at Oaktree Asset Management.
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Monday, November 3rd, 2008
Asian markets have gained points this Monday morning, with Hong Kong’s benchmark Hang Seng rising 3 percent. The gains come as South Korea is the latest government to reveal a stimulus plan to boost the economy and trust in financial institutions. The South Korean measures are aimed at preventing the country from falling into a recession. Australia’s S&P/ASX 200 was up more than 5 percent despite concern that national manufacturing and retail sales are slowing.
India’s main stock index rose 4.6 percent after a central bank decision over the weekend to cut the nation’s key interest rate and release $8.1 billion into its financial system.
Hong Kong’s blue-chip Hang Seng Index was among the region’s top gainers, climbing 414, or 3 percent, to 14,382, Singapore’s key index also rose by about 4 percent.
“I don’t think it’s a massive change in direction, more a case of a little more confidence going forward in massively oversold stocks and … global organized attempts to deal with the issues,” said Miles Remington, head of Asian sales trading at BNP Paribas Securities in Hong Kong.
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