Are we on the verge of a new financial crises sweeping the whole world? The US losses just in one week exceeded 8 trillion dollars, most indexes plunged down more than 500 points which in turn also affected our gulf markets. Also the European markets went down sharply causing a major commotion in their markets.
Financial markets in Asia and Europe remained topsy-turvy Thursday, and trading was mixed, a day after concerns over European debt triggered sharp declines in U.S. and European stocks.Major markets on both sides of the Atlantic declined Wednesday by more than 4 percent, with investors dumping financial stocks in particular amid signs that the debt crisis on the periphery of Europe is rapidly becoming a banking crisis at its core.
Trepidation about the health of Europe’s financial firms overtook concerns about the slow pace of the U.S. economic recovery and the stunning downgrade last week of the nation’s credit rating by Standard & Poor’s.Concerns rose that the debt of a handful of smaller European nations could engulf the continent’s biggest economies, France and Germany, which have promised to bail their neighbors out.
In the United States, the Dow Jones industrial average fell 520 points, or 4.6 percent, to 10,720, while the Standard & Poor’s 500 dropped 52 points, or 4.4 percent, to 1,121. The declines erased the major gains made Tuesday and dashed hopes that the markets were starting to rebound from their recent lows.
In early Thursday trading, London’s FTSE 100, the Paris CAC 40 and Frankfurt’s DAX index rose, fueling hope for a similar recovery on Wall Street . But by mid-morning in Europe, the CAC was back in negative territory, and the DAX and FTSE gains were still hovering under 1 percent.
In Asia,markets opened with huge lossesbut closed with a modest recovery. Japan’s Nikkei 225 index fell 0.63 percent, closing at 8,981.94 — going below the 9,000 mark. Hong Kong’s Hang Seng fell 0.95 percent, closing at 19,595.14. Korea’s Kopsi index closed at 1,817.44, rising 0.62 percent. Australia’s S&P/ASX 200 index closed at 4,203.50, down 0.09 percent.
I hope this will not continue because it will lead to fall of nations…I think people should invest in natural resources such as Gold,Silver..copper..etc. Speculations that Gold price will reach 2000 USD. I remember well when gold was around the 700 USD benchmark. Those who bought gold at that time are now very lucky!