damm scary raching < 2k.....
As anticipated by a member here, Japan's Nikkei indeed hit the worst...and as with the case of DJIA's barrier, i think STI will drop below the 2k milestone.
Fear ruled the day in Asian markets as panic selling sent benchmark indices to multi-year lows on Wednesday.
Markets from Tokyo to Jakarta tumbled sharply, dragged lower by another gloomy session on Wall Street that saw the Dow Jones industrial average notch its biggest five-day points fall ever.
Japan led the dive, with the Nikkei 225 plunging 9.4 percent [JP;N225 9203.32 -952.5801 (-9.38%) ]to its biggest one-day drop since the 1987 stock market crash. Several factors fuelled the selloff -- mounting fears of a global recession, expectations of a slide in profits at Toyota Motor and a firmer yen. Japanese steelmakers such as Nippon Steel slumped 11 percent amid concerns a global downturn will stifle steel demand.Exporters were dealt a further blow by a firmer yen, with Elpida Memory sinking 12 percent.
That pessimism was reflected in the way investors dumped shares of Toyota Motor. The world's biggest automaker plunged 11 percent, after the Nikkei business daily reported that the automaker was likely to post a 40 percent slide in annual profit, missing its profit estimates on weak sales in the U.S. and slower growth in China.
In Seoul, the KOSPI closed 5.8 percent lower, hammered by worries the credit crisis will drag the economy into recession. Tech exporters such as Hynix Semiconductor plunged more than 5 percent despite a weaker won. The country's refineries and banks were battered, with the Industrial Bank of Korea tanking over 10 percent amid a gloomy global economic outlook.
Shinhan Financial fell 8.25 percent to close at a 52 week low, and SK Energy lost 12.71 percent.
The picture was similar in Australia. The benchmark S&P/ASX200 tumbled 5 percent on selling across the board. The country's big banks such as St George and NAB sank more than 6 percent. Big miners such as BHP Billiton, the market's heaviest-weighted stock, lost favor as investors feared the global slowdown would crimp demand for metals and other commodities. But Commonwealth Bank of Australia was on a trading halt due to a share sale to help fund its A$2.1 billion takeover of BankWest, the Australian unit of British bank HBOS.
Hong Kong shares plummeted 6.7 percent to fall below the 16,000 point-level for the first time in more than 27 months. Investors feared for the worst as broad-stroke policy measures failed to end the global credit crisis. Property leaders such as Cheung Kong lost 5.6 percent while energy and other resource stocks were battered by concern over slowing demand. Financials such as China Construction Bank sank 10 percent.
Singapore's Straits Times Index tumbled 5.9 percent, with big caps such as Singapore Exchange diving more than 8 percent amid a lack of confidence among investors.
And oh, there's a live conference going over at Downing Street and broadcasted live by BBC World News. 8 UK Banks are being capitalised too...
Last edited by eosdigital; 8th October 2008 at 04:59 PM.
Canon EOS 30D , EF 17-40mm F4L USM , EF-S 55-250mm F/4-5.6 IS
We are heading into recession. Will this affect photographers who are doing for a living? No more new equipments?
SINGAPORE, Oct 8, 2008 (AFP) - Singapore appears headed for its first recession since 2002 as the city-state suffers from a US economy wilting under its worst financial crisis since the Great Depression, economists say.
Southeast Asia's wealthiest economy in terms of GDP per capita is heavily dependent on trade, which makes it sensitive to hiccups in developed economies, particularly key export markets the US and Europe.
The crisis that began last year in the US subprime, or higher-risk, mortgage sector is now infecting European shores, and Singapore may very likely find itself in an extended downturn, economists said.
They expect this Friday's release of preliminary economic data for the third quarter to confirm Singapore is in a technical recession, generally defined as two consecutive quarters of quarter-on-quarter contractions in economic output.
"We are pencilling in the worst for Singapore.... We might see two straight years of (economic) contractions (from 2009 to 2010)," said Song Seng Wun, a regional economist with CIMB-GK Research.
While the last technical recession came six years ago, the most recent full-scale recession was in 2001 when the economy contracted 2.4 percent during the year.
After years of growth, signs of a slowdown emerged with recent disappointing trade data and contractions in the important manufacturing sector, which includes the country's export-dependent electronic and pharmaceutical industries.
In August, key non-oil domestic exports fell for the fourth straight month, with electronic shipments continuing a decline begun in February 2007, and manufacturing dropped by 12.2 percent.
The August fall in output followed a 21.5 percent decline the previous month.
In the second quarter to June, Singapore's economy contracted 6.0 percent on an annualised, quarter-on-quarter basis and the negative trend likely extended into the third quarter, said economists.
"Things are bad globally," said Kit Wei Zheng, Citigroup's vice president for regional economics and market analysis.
"There are a lot of downside risks and in such a scenario, one cannot hope for a quick recovery," he said in Singapore.
Kit is optimistically forecasting a fourth-quarter recovery, with full-year growth at 2.8 percent.
Song said his revised 2009 forecast would likely be for negative growth.
He said that given the rarity of the global crisis, "the numbers we may be looking at may be once in a century for Singapore."
According to economists' calculations, more than two-thirds of the country's economy, valued at 243.17 billion Singapore dollars in 2007 (166.46 billion US), is driven by external demand.
The island nation has no significant domestic economic drivers to lean on because its market of almost five million is simply too small, said economists.
"If the world is in a recession, there is little that we can boost," said Song. "Our plan B is really to try to make the local population bigger."
Economists from Credit Suisse also see Singapore's economy slowing further next year.
"Signs that growth will be lower in 2009 than in 2008 are everywhere... lower job and income growth, falling asset prices, and flat to negative export growth," they said in a report.
"By sector, the global financial turmoil could hit financial services growth hard, exports are likely to drag down manufacturing, and the biomedical sector is expected to remain under pressure from competition from generic drugs."
In early August Singapore's government cut its forecast for economic growth this year to between four and five percent.
But Finance Minister Tharman Shanmugaratnam warned this week that the country could be stuck in an economic downturn that may last "several quarters" as the global crisis evolves.
"It is now an economic crisis," he was quoted as saying Monday in The Straits Times.
"So globally the economy is slowing down. This is a fact that we cannot escape."
キヤノン 450D + 5D2 + 5D3 + 6D + 富士フイルム XP1 :)
Fed cuts rate by 0.5 points, 25%.
Fed, central banks cut rates to aid world economy
By JEANNINE AVERSA, Associated Press Economic Writer
1 hour, 1 minute ago
WASHINGTON - In a rare coordinated move, the Federal Reserve and other major central banks from around the world slashed interest rates Wednesday to prevent a mushrooming financial crisis from becoming a global economic meltdown.
Markets retreated, though, on worries that the move was too little, too late.
The Fed reduced its key rate from 2 percent to 1.5 percent. In Europe, which also has been hard hit by the financial crisis, the Bank of England cut its rate by half a point to 4.5 percent and the European Central Bank sliced its rate by half a point to 3.75 percent.
The central banks of China, Canada, Sweden, and Switzerland also cut rates. The Bank of Japan said it strongly supported the actions.
"The recent intensification of the financial crisis has augmented the downside risks to growth," the Fed said in explaining the coordinated action, the latest in a series of bold moves meant to pry open tight lending and revive the global economy.
The Dow Jones industrials, already down 875 points this week, fell another 150, and all the major indexes were down sharply.
The Fed's action will reduce borrowing costs almost immediately for U.S. bank customers whose home equity and other floating-rate loans are tied to the prime interest rate. Bank of America, Wells Fargo and other banks cut their prime rate by half a point to 4.5 percent after the Fed announcement.
White House spokesman Tony Fratto welcomed the cooperation among the Fed and other countries' central banks to battle the crisis. "It's important and helpful that central banks are working in a coordinated way to deal with stress in the financial system," Fratto said.
The country's presidential contenders also embraced the action. "This is a global crisis that requires a global solution," said Democrat Barack Obama. Republican rival John McCain hoped it would contain the "financial crisis spreading across the globe."
Some analysts were skeptical that the coordinated rate reductions would do much to turn things around.
"At first blush, while this is a big step, it is unlikely to prove sufficient to stem the rot. Additional rate cuts are likely and further measures to inject liquidity and re-capitalize banks are needed," said Marc Chandler, global head of currency strategy at the investment firm Brown Brothers Harriman.
The rate cuts came against a backdrop of increasing anxiety in global financial markets. Investors have been fleeing shares on worries that neither the Fed, nor other central banks, could move fast enough to stop the rising turmoil.
European indexes, which were down about 5 percent before the rate cut, pared only some of their losses. In Britain, the FTSE-100 fell 4.24 percent, Germany's DAX dropped 4.98 percent, and France's CAC-40 dropped 4.58 percent.
In Asia, Japan's Nikkei 225 closed 9.38 percent lower and Hong Kong's Hang Seng tumbled 8.17 percent hours before the rate cuts were announced; their declines showed the extent of the worldwide gloom.
The worldwide gloom follows a sell-off in U.S. markets late Tuesday, where major stock indexes slid 5 percent. The rout brought the Dow Jones industrials' losses to more than 875 points in two days, and its close was the lowest close in five years. The blue chip index is now around 33 percent below its record close of 14,164.53 a year ago.
The Fed's action Wednesday was the latest in a long series of moves over the last several weeks that the central bank has taken in coordination with other federal agencies, Congress and the White House to shore up a financial industry stung by bad loans, mounting losses and — in many cases — collapse. President Bush signed a $700 billion financial bailout bill into law on Friday.
The Fed's action reversed its current policy on interest rates, which had been to hold them steady out of concern that more cuts would fuel inflation. Since Fed Chairman Ben Bernanke and his colleagues put a stop to interest-rate cuts in June, economic and financial conditions have deteriorated significantly.
"The pace of economic activity has slowed markedly in recent months," the Fed said. "Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit."
Although inflation has been high, the Fed believes the recent drop in energy prices and the weaker prospects for economic activity have reduced this threat to the economy.
In addition, the Fed reduced its emergency lending rate to banks by half a percentage point to 1.75 percent. Given the intense credit crisis, banks have been ramping up their borrowing from the Fed's emergency "discount" window.
The fact that the Fed felt it couldn't wait until its regularly scheduled meeting on Oct. 28-29, underscored the urgency of the situation.
One of the goals of the coordinated rate cuts is to spur nervous consumers and businesses to spend more freely again. They clamped down as housing, credit and financial problems intensified last month, throwing Wall Street into chaos. Many believe the United States is on the brink of, or already in, its first recession since 2001, one that could quickly spread to other countries around the globe.
It can take months before rate cuts work their way through the financial system, however, and the economy has pressing problems now. Major U.S. retailers turned in dismal reports of third quarter sales, a dire omen for the all-important holiday shopping season. Consumer spending accounts for more than two-thirds of the nation's economic activity.
The Fed's last rate cut was in late April, capping one of the most aggressive rate-cutting campaigns in decades as it scrambled to shore up the faltering economy. After that, the Fed moved to the sidelines, holding rates steady as zooming food and energy prices during that period threatened to ignite inflation. In the past few months, energy prices have retreated from record highs reached in mid-July, giving the Fed more leeway to drop rates again.
At its last meeting in September, the Fed struck a more dire tone about the economy, hinting that a rate reduction once again could be in the offing.
Even with the unprecedented $700 billion financial bailout plan, the failing economy and the jobs market probably will get worse. Many believe the economy will jolt into reverse later this year — if it hasn't already_ and will stay sickly well into next year.
One of the most crucial pillars of the economy — the jobs market — has cracked, and wage growth is slowing. This means that consumers will be even more hard-pressed to spend in the fashion that helps grow the economy.
Increasingly skittish employers slashed payrolls by 159,000 in September, the most in more than five years. A staggering 760,000 jobs have disappeared so far this year. The unemployment rate is 6.1 percent, up sharply from 4.7 percent a year ago.
The U.S. unemployment rate could hit 7 or 7.5 percent by late 2009. If that happens, it would mark the highest rate of joblessness since the months immediately following the 1990-91 recession. Some economists say the jobless rate could rise even more before the situation starts to get better.
Mounting job losses, shrinking paychecks, shriveling nest eggs and rising foreclosures all have weighed heavily on American voters, who will be electing a new president in about four weeks. The economy is their No. 1 concern, polls have shown.
Associated Press writers Joe Bel Bruno and Anne D'Innocenzio in New York and Pan Pylas in London contributed to this report.
Last edited by melvin; 9th October 2008 at 06:50 PM.
Something interesting to share
CEO --Chief Embezzlement Officer.
CFO-- Corporate Fraud Officer.
BULL MARKET -- A random market movement causing an investor to mistake himself for a financial genius.
BEAR MARKET -- A 6 to 18 month period when the kids get no allowance, the wife gets no jewelry, and the husband gets no sex.
VALUE INVESTING -- The art of buying low and selling lower.
P/E RATIO -- The percentage of investors wetting their pants as the market keeps crashing.
BROKER -- What my broker has made me.
STANDARD & POOR -- Your life in a nutshell.
STOCK ANALYST -- Idiot who just downgraded your stock.
STOCK SPLIT -- When your ex-wife and her lawyer split your assets equally between themselves.
FINANCIAL PLANNER -- A guy whose phone has been disconnected.
MARKET CORRECTION -- The day after you buy stocks.
CASH FLOW-- The movement your money makes as it disappears down the toilet.
YAHOO -- What you yell after selling it to some poor sucker for $240 per share.
WINDOWS -- What you jump out of when you're the sucker who bought Potash @ $240 per share.
INSTITUTIONAL INVESTOR -- Past year investor who's now locked up in a nuthouse.
PROFIT -- An archaic word no longer in use.
8th Straight day of falling.
DJIA fell below 9000 points early this morning at 3.03am, and it is possible tonight that it will fall below 8000.
Monetary easing in Asia and massive U.S. bank borrowing from the Federal Reserve did little to calm the panic in credit markets at the epicenter of the global financial crisis.
Overnight interbank borrowing rates eased after central banks around the world cut interest rates earlier this week, but they held well above target rates in Asian trade on Friday. Longer-term funding costs also remained stubbornly high despite the unprecedented act of global coordination.
Analysts say that at the heart of the money markets squeeze is a crisis of confidence and fears of bank failures, concerns that central bank cash injections and rate cuts can only partially address.
"We're not seeing any relief in term LIBOR (London Interbank Offered Rate) fixings, which tells us that the rate cut has exclusively impacted on the overnight market, but it hasn't touched the LIBOR market at all," said BNP Paribas rate strategist Alessandro Tentori.
"And that's not a very good sign," he added.
Singapore eased its monetary policy for the first time since 2003, declaring that it would slow the appreciation of the Singapore dollar, which is managed against a basket of currencies.
The monetary loosening will cushion the impact of the global crisis, but Singapore's export-dependent economy, officially in recession after two quarters of contraction, could keep shrinking well into 2009, analysts said.
The Reserve Bank of Australia injected A$2.63 billion (1.06 billion pounds) into the banking system on Friday, adding about A$790 million (467 million pounds) more than the estimated need in an effort to ease funding pressures.
But like other central banks, Australia's central bank has been frustrated by money markets despite its generous cash injections and its aggressive 100 basis point cut in the cash rate earlier this week.
The three-month LIBOR for the Australian dollar widened to 142 basis points above the 6.0 percent cash rate, the biggest gap ever, showing just how reluctant banks are to lend to one another.
In China, a freezing up of money market lending drove money into government debt, pushing yields of three-year government bonds offered at a an auction much below expected levels, traders said.
In a new twist, investors in Japan dumped normally safe-haven government bonds in a rush to secure cash and gold.
"Worries about counterparty risks have frozen up the money market, and that has pushed short-term JGB yields up," said Tetsuya Miura, a bond strategist at Shinko Securities. "We can call this a new type of bad yield rise."
Costly Term Borrowing
U.S. banks borrowed a record $420 billion per day from the Federal Reserve in recent days as financial institutions continued to rely on the lender of last resort.
Banks' discount window borrowings for the week to October 8 topped the high set in the previous week and were greater than the size of the economy of Belgium.
High bank-to-bank lending rates have stymied funds from flowing into other parts of the money markets such as commercial paper, which continued to contract despite support from the Federal Reserve.
While lower overnight interest rates will prevent further deterioration in the global credit crisis for now, elevated term borrowing costs will hurt cash-strapped companies and consumers in the long run, according to analysts.
The British Bankers Association's latest daily fixing of London interbank offered rates, which are global rate benchmarks, showed the cost of overnight dollar, euro and sterling funds fell less than a half-percentage point.
That was the size of rate cut delivered by the Federal Reserve, European Central Bank and Bank of England on Wednesday as central banks around the world acted in unison to fight the deepest financial crisis in 80 years and stave off recession.
Overnight dollar funds were quoted between 4 and 7 percent in Singapore, 4.5-5.8 percent in Bangkok and 4-5 percent in Jakarta, close to Thursday's overnight LIBOR rate just above 5 percent and well above the U.S. Federal Reserve's new 1.5 percent target rate.
Three-month dollar rates in Asia were quoted between 4.5 and 7 percent. The three-month dollar LIBOR was fixed at 4.75000 percent on Thursday, its highest this year.
Canon EOS 30D , EF 17-40mm F4L USM , EF-S 55-250mm F/4-5.6 IS
part of this was expected...all that paper value was going up without anything to back it up.
ultimately it was a question of who was going to blink first, now everyone's bailing.
Hopefully this makes us rethink our approach towards the economy?
STI @ 1948 now.
Looking at 1800 as the support. Break past that we are in for a ride
Anyone eyeing at the blue chips now ?
Last edited by giantcanopy; 10th October 2008 at 07:53 PM.