World Markets - June 7, 2006
June 7, 2006
Pacific rim
Hong Kong - Asian stocks fell sharply yesterday after the US Federal Reserve chief took a hard line on inflation, sparking a fresh bout of nerves that interest rates will go higher even as the global economy slows.
As a result, Tokyo slumped 1.81 percent, Sydney 1.64 percent, Wellington 1.07 percent and Bangkok 1.57 percent. Mumbai continued its rout and plunged 2.5 percent, while Jakarta dropped 2.34 percent. Losses elsewhere were more modest.
In Hong Kong, share prices closed down 0.27 percent but came off early lows on late bargain-hunting as investor nerves steadied following the latest selloff on Wall Street. Seoul was closed for a public holiday. - AFP
Europe
London - European stocks fell to their lowest in more than two weeks yesterday after comments by the Federal Reserve chairman suggested that US interest rates might keep rising.
Anglo American, Nokia and UBS led declines. Anglo slid 5 percent to £s;19.92 (R250) as Hugh Cuthbert, an investment manager at SVM Asset Management, said "fear for a slowdown in global growth" had sparked a selloff in mining stocks.
Swiss bank UBS dropped 3.3 percent and Nokia retreated 4.1 percent.
The Dow Jones Stoxx 600 Index lost 2 percent to 312.57 in London, its lowest close since May 22. All 18 industry groups declined. The Stoxx 50 dropped 1.7 percent. The Euro Stoxx 50 sank 2.1 percent to the lowest since December. - Bloomberg
US
New York - Stocks fell sharply for the second consecutive session yesterday, with the Dow Jones industrial average losing more than 100 points and falling below 11 000 for the first time since March.
The Dow dropped nearly 200 points on Monday after Federal Reserve chairman Ben Bernanke spooked Wall Street by saying that the central bank will remain vigilant in fighting inflation. Investors have been hoping the Fed would stop increasing short-term interest rates after 16 hikes.
The nation's benchmark rate now stands at 5 percent. Federated Department Stores fell $1.31 to $70.57 (R478) after restating cash flows, Hewlett-Packard fell 47c to $31.12 on a revised full-year outlook and IBM fell 34c to $78.72 after tripling its investment in India. - Sapa-AP
|
|
