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Selling begins to ease on world stock markets

The Sydney News.Net
Tuesday 7th October, 2008

Stock markets around the world were mixed Tuesday with signs the panic-selling of recent days may be peaking.

In most parts of the world stock prices rose, while in others the losses were contained.

There were however pockets where large falls were still being recorded.

Gains however far outweighed the losses, with mixed performances in Europe. U.S. markets were stronger at the open, but were slipping as the day wore on.

In late afternoon European trading the London FTSE 100 was up 0.16%, despite banking stocks being sold off. Britain's leading banks are having talks with the UK Treasury over a possible capital injection into the banking system. The Paris-based CAC 40 was ahead 0.55%, while the German DAX was down 1.00%. The Swiss SMI was 0ff 0.48%%.

The Australian Reserve Bank stunned markets Tuesday with a one-percent cut in official interest rates from 7% to 6%. It was seen by some as a signal central banks would act aggressively to avert recession.

Australian markets have been lambasted by falling commodity prices which has sent the local currency reeling. The Australian dollar was .9840 cents two months ago, whereas in the past 24 hours it has dipped below .7000 cents. Normally a cut in interest rates would send a currency down, which happened in Australia Tuesday, but only momentarily. Traders figured such a substantial cut could keep the economy moving, and if mirrored by central banks in other countries, particularly on a concerted basis, could reduce prospects for a global recession. This would help the Australian dollar which rallied to more than .7200 cents after the interest rate cut.

Australian stocks rallied on news of the RBA rate cut. The key All Ordinaries index closed up 1.17%.

Indonesia's Jakarta Composite, which was Asia's worst performing bourse on Monday, having shed more than 10% of its value, was down only 1.76% at the close Tuesday.

The Singapore Straits Times was up 0.43%, while in South Korea the Seoul Composite was ahead 0.54%.

In China the benchmark Shanghai Composite was down 0.17%.

In Hong Kong and Tokyo traders remained nervous. the Hang Seng dropped 4.97% while the Nikkei 225 was down 3.03%.

Taiwan's Taiwan Weighted gained 0.34%.

Foreign currency markets were quiet after Monday's wild gyrations. In late afternoon trading in Europe trading the euro was quoted higher at 1.3676. The pound rallied to 1.7616. The Japanese yen which had flirted with the 100.00 level on Monday, was back at 102.45.

The Swiss franc was stronger at 1.1379, while the Australian dollar, despite the 1% interest rate cut, was considerably stronger at .7222. The Canadian dollar remained weak at 1.1020.

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Comments on this story

kawahchan
10-07-08, 11:44 AM

Selling begins to ease on world stock markets

The black man Barack Hussein Obama is “backfiring” the world’s stock markets, also the blowing wind to Obama’s polling numbers are “backfiring” America’s security. World people just like American mainstream to ask “NOW WHAT ?" to Obama, “NOW WHAT ?" to 2009. NO ONE wants to share to a black liberal Socialist Obama. McCAIN-PALIN : “NOW WHAT ? NO U-turn to Obama’s supporters' fate after November 5th."


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