The stock market went to the hospital today

World stock markets have fallen on the background of the general uncertainty investors

In brief: Bidding for global stock markets began with the collapse of the major indices. Restoring quotations were a myth, in which few believed.

World stock indices resumed their decline under pressure from fears of spread of the credit crisis on the euro area, as well as on the background of growing geopolitical tension in Asia. Speculative capital, has long nourished the growth of stock markets, leaving the risky assets, contributing to a very “blow” emerged on the market “bubbles”.

A very positive opening of the American trading session, it was at the root crossed massive sellout in the second half of trading, showed clearly that the market is not “ill with” the credit crunch in the euro area, as well as negative consequences that may come from banks financial sector reform in the U.S.. The Dow lost 1.24%, falling to 10,066.57 on, the index S & P – 1,29%, stepping up to the mark n. 1,073.65. The already high credit risks Eurozone jumped in the course of yesterday’s trading on reports of significant losses suffered by Spanish banks, which made. Bank of Spain to begin developing a strategy of consolidation in the segment of small and medium-sized banks (cajas). For more nervousness on the market also brought discussion of the prospects for substantial tightening of banking regulation in the United States that threatens banks lost profits. As a result, the brunt of sales occurred in the financial sector. Today at the auctions in Asia, sales only increased. In addition to credit risk against the market is growing political tensions between North and South Korea. MSCI Asia Pacific Index lost 2.8%, falling to a 10-month low. Amid growing fears of a second wave of financial crisis, which could provoke Europe, economic expectations have deteriorated, causing sales of shares of mining companies – the main outsiders in Asia.

Anrey Torbinski
2010-05-25 10:49, Economics.

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