15 September 2008
The European Bourses fall in the wake of Lehman
The European markets ended sharply down Monday, the FTSEurofirst 300 index posting its worst close since July 16. According to Reuters, values were down to ten times more numerous than those on the rise.Financial markets have experienced one of the most turbulent days since the beginning of the financial crisis, after the announcement of bankruptcy of Lehman Brothers and Merrill Lynch redemption, which revive fears of a domino effect on 'entire U.S. financial system.
The stock markets are in steep decline, undermined by fears that still lie the list of victims of the credit crunch. The same fears promote the decline of values shelters, such as loans, gold or yen.
Oil is also a net decline, the financial crisis fuelling concerns over growth and demand for hydrocarbons.
Large squares of the continent have nevertheless finished above their lowest in the day, the relatively small decline on Wall Street have helped to limit the damage. In Paris the Cac 40 index finished down 3.78% to 4168.97 points, also the lowest since July 16, after falling in the morning at 4075.54, a fall of nearly 6 %.
The financial values logically have been the most heavily affected: the DJ Stoxx European banks dropped 6.2% and insurance 6.33%.
Among the big names of these different sectors, BNP Paribas dropped 7.16%, Royal Bank of Scotland 10%, 14.54% UBS, Axa - exposed to Lehman - Allianz 8.52% and 6.11%.
For Adrian van Tiggelen, senior strategist for ING Investment Management in Amsterdam, "the valuation of derivatives and CDO (collateralized debt obligations) at the end of the third quarter will be depreciated and there will be new warnings on results in the banking sector . There will also be other warnings in other sectors dependent on consumer spending. "
The values related to raw materials have suffered the same time reducing exposure to risk and fears for the request. The index of core resources and energy have both dropped around 4.8%. Total ceded BP 5.04% and 3.63%.
The financial news has largely overshadowed that of mergers and acquisitions in other sectors, as the repurchase of the Swiss group Ciba Specialty Chemicals by BASF. Ciba surged by 28.11% to bring the purchase price but BASF lost 4.15%.
by erectusplus at 18:10:00 |
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