Wednesday, January 23, 2008

The European stock exchanges dive back into the red

A little bit before 2 pm, in Paris, the CAC 40(PARIS STOCK INDEX) moved back of 2,82 %, London lost 2,10 % and Frankfurt, 3,68 %. The president of the Central european bank, Jean-Claude Trichet, recognizes risks for the growth of the Euro-zone.

The European stock exchanges sank into the red, on Wednesday, January 23rd at the middle-day, on bottom of anxieties concerning the evolution of the rates in the United States and in Euro-zone.
The European places, having opened in increase, had restarted in decline after the comments of the president of the Central european bank ( BCE), Jean-Claude Trichet, letting hear(understand) that he(it) would not follow the example of the American federal Reserve ( Fed) by lowering(dimming) his(its) interest rates.
The president of the BCE indeed indicated that he did not intend to deviate from his politics(policy) by underlining the importance of the "price stability" and by calling back(by reminding) the mandate of the BCE which is to fight against the inflation.

Stock markets in the decline

The European places, having opened in increase, had restarted in decline after the comments of Jean-Claude Trichet. A little bit before 2 pm, CAC 40(PARIS STOCK INDEX) lost 2,82 % in 4.705,76 points. London lost 2,10 % and Frankfurt, 3,68 %. (> the prices(lessons) of the live stock exchanges(scholarships)).
The quasi-totality of the European stock markets had nevertheless ended in increase on Tuesday, with the exception of Frankfurt which ended on a light 0,31 % recession(drop). But London progressed of 2,90 % and 2,07 % Paris. Zurich, Amsterdam, Madrid and Milan also finished the session widely in the green.

Hong-Kong gains(wins) 10,72 %

In Asia, the stock exchange of Hong-Kong ended on Wednesday on a spectacular bounce(recovery), the indication Hang Seng gaining(winning) 10,72 % at 24.090,17 points in the fence(close).
The stock exchange of Hong-Kong had tumbled of 8,65 % in 21.757,63 points on Tuesday, the investors being always haunted by the fear of a recession in the United States and possible fatal repercussions on all the Asian savings.
In front of these fears, the American federal Reserve decided as a matter of urgency on Tuesday to amputate its main intervention rate of 0,75 no percentage, in 3,50 %, by underlining the risks increased on the economic growth and the deterioration continues financial markets.
The monetary authorities of Hong-Kong announced on Wednesday that they also reduced their intervention rate of 0,75 no percentage, in 5,00 %.

In Japan

The indication Nikkei de la Bourse de Tokyo ended the session of Wednesday in increase of 2,04 %. The indication Nikkei 225, the not balanced average of 225 star values, resumed(took back) 256,01 points (2,04 %) in 12.829,06 points, getting out of breath a little having won until 3,90 % early in the day. He(it) had melted of more than 9 % during previous both sessions.
The widened indication Topix of all the titles(securities) of the first picture(board) ended for its part on an earnings(gain) of 29,98 points (2,46 %) in 1.249,93 points.
Always in the fence(close), Seoul progressed of 1,21 %, 2,68 % Manilla and New Zealand 0,23 %.
Against the current besides of the region, the composite indication of Shanghaï gave up 0,58 % at the middle-session, and Taïpeh ended in strong 2,29 % fold.
In the middle of session, Jakarta progressed of 4,61 %, whereas Singapore came back carefully on neutral ground (0,03 %) from a starting up in brass band.
In Bombay, the indication Sensex opened in increase of 4,62 %.

Wall Street limits the damages

From his part, Wall Street limited the damages, on Tuesday evening. After a fall of 465 points in the beginning of session, the Dow Jones index of the New York Stock Exchange ended in decline of 128,11 points, that is 1,06 %, in 11.971,19 points. In the end(final), the Dow Jones index closed down of 1,06 %, 2,04 % Nasdaq and Standard widened indication and Of Poor 500 of 1,11 %.

The anxiety persists

But the anxiety persisted at the speaker's on the possible consequences of a major economic crisis in the United States, in spite of the statements(declarations) of the White House assuring(insuring) not to expect a recession.
The investors dread not only the distribution to the whole planet of a possible recession in the United States, but also a major crisis of the financial system, filled by the difficulties of the rehausseurs of credit, widely pointed since the beginning of the crisis.
Certain speakers are afraid of an embrittlement of these underestimated actors who are in charge of assuring(insuring) 2.400 billion dollars of obligations(bonds) in traffic(circulation) in the world. A reliable loss in the solidity of rehausseurs gets(touches) in the first one the insurers and the réassureurs, which can pull(entail) as dominoes the banking sectors and more widely financial.

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