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World Stock Market March 2007 Collapse?
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Has the CHina bubble finally burst around the world? Well the past few days have been a blur. For starters the NYSE are in downside trading curbs, helping to build a floor under stock prices, which appeared to crumble after the opening.
Also contributing to a slight recovery in equities was a report from the Institute for Supply Management in Arizona, which said U.S. manufacturing expanded slightly in February, reversing a contraction in January.
The Dow, which tumbled 209 points earlier, is was trading at 12,208.71 just after 11 a.m. EST, down 59.92 points.
In Toronto, losers including, Bank of Nova Scotia, Talisman Energy, Toronto-Dominion Bank, Suncor Energy and Alcan are weighing heavily on the S&P/TSX composite index, which is down 97.94 points at 12,947.08.
All 30 components of the Dow Jones Industrial Index are trading lower on Wall Street in what has turning into another stock market rout.
The rise in the value of the yen is triggering the unwinding of risky “carry trades,” which involve the reinvestment of the low-yielding Japanese currency. That in turn suggested a further decline in world stock markets, including Wall Street, which have benefited from an appetite for risk, traders say.
The Dow Jones industrial average, which had been down 200 points, recovered about half of those losses and was off 108 points at 12,195 about 45 minutes into the Thursday session. The S&P/TSX composite was off 147.89 points at 12,897.13.
Stocks are plunging at the opening, with the Dow Jones Industrial Index down almost 175 points, at 12,094.87, in widespread selling.
The selling pressure is being felt on the S&P/TSX composite as well — it is down nearly 200 points, at 12845.17.
Traders say investors, nervous about the impending release of key U.S. economic data, took their cues Thursday from declining overseas markets.
Wall Street now is nervously waiting for the release of the Institute for Supply Management's assessment of manufacturing activity during February, due at 10 a.m. EST.
For the first time in a while, Torstar's quarterly results are not an “unmitigated disaster.”
The stock, which closed at $18.15 in TSE trading Wednesday, could see some action at the opening. The latest bid-ask is $18.05-to-$18.42.
Stock futures continues to point to a lower open on Wall Street Thursday. Dow futures are off 94 points at 12,180.00 after data from the U.S. government said inflation accelerated in January. Stock futures on Wall Street have turned sharply lower Thursday after a mixed-to-slightly lower start.
Traders attributed the worsening trend to the yen strengthening, raising worries that the risk aversion shown by investors in Tuesday's global equities rout may resurface when Wall Street opens.
Stock futures on Wall Street are slightly lower Thursday morning, pointing to a soft opening for markets ahead of several pieces of economic data.
European stocks lost early gains on Thursday to trade broadly unchanged as investors remained cautious after two days of sharp losses.
Jitters also returned across Asian stock markets in the wake of the recent global rout that was touched off by concerns about slowing economic growth in the United States and a possible overheating of Chinese markets.
In London, gold was quoted at $673.60 (U.S.) an ounce, up from $668.80 late Wednesday.
Oil prices dropped slightly Thursday as traders responded to gains on Wednesday fuelled by a report showing declining U.S. crude inventories. Crude for April delivery fell 18 cents to $61.82 in early afternoon Asian electronic trading.
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Mar 1, 2007, 11:25 AM
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