Bloodbath: Equities and commodities plunge on fears over global recovery September 22, 2011 A FRANTIC sell-off saw stock markets tumble yesterday while commodities collapsed, as spooked investors retreated from mounting signs of global economic weakness. The world economy is “in a danger zone”, World Bank chief Robert Zoellick said yesterday, while International Monetary Fund (IMF) boss Christine Lagarde again said that the path to recovery is “narrowing”. At [...]
FedEx pares outlook despite rise in profit September 22, 2011 FEDEX, the world’s second biggest package delivery company, last night reported a higher quarterly profit that slightly beat forecasts but pared its outlook for the full year, citing fuel prices and moderate global economic growth. Analysts had expected the company to lower its earnings guidance based on a tepid domestic economy and slower international trade [...]
FTSE suffers 5pc losses on Fed woe September 22, 2011 A TOXIC cocktail comprising a grim economic outlook from the US Federal Reserve and downbeat data in China left Britain’s top shares nursing a near five per cent drop yesterday, as investors pinned some hopes on this week’s G20 meeting. Commodity stocks, sensitive to data showing a stuttering recovery, were the biggest fallers by some [...]
Dire day of selling sinks US equities September 22, 2011 US stocks plunged yesterday, extending a selloff to four days, as policymakers’ failure to arrest global economic stagnation sent markets spiraling downward. The heavy volume of last night’s plunge signaled investors are selling in anticipation of more losses. Wall Street’s “fear gauge”, the CBOE Volatility Index, jumped 12 per cent, giving the index its biggest [...]
The Fed’s paper plane won’t fly: why the US economy is in need of more than a Twist September 22, 2011 THE markets were hoping for a helicopter drop from the US Federal Reserve this week, a reference to Ben Bernanke’s infamous 2002 speech on how to prevent deflation. What they got was more a paper plane, where the Fed will fly Treasury bonds from the short to the long end of the interest rate curve. [...]
Global markets hammered by US and China gloom September 22, 2011 The FTSE 100 plunged on opening today as a bleak view of the US economy from the Fed and fears over a slowdown in China – a key engine room in the global economy – took their toll. London tracked hefty falls on Wall Street and in Asia with the Hang Seng in Hong Kong [...]
FED ADDS AN EXTRA TWIST TO STIMULUS September 21, 2011 THE FEDERAL Reserve under Ben Bernanke (pictured)announced two new “twists” to its efforts to stimulate the ailing US economy last night, yet stopped short of declaring another phase of quantitative easing. “There are significant downside risks to the economic outlook, including strains in global financial markets,” the Fed said in a bid to justify its latest intervention. [...]
MPC moves closer to new round of QE September 21, 2011 MORE QUANTITATIVE easing (QE) is likely to be implemented “at some point” because of falling economic growth expectations, minutes of last week’s monetary policy committee (MPC) meeting, out yesterday, show. However, the US policy of selling short-maturity assets and replacing them with longer ones, cutting long-term interest rates, was ruled out. Only one of the nine [...]
FTSE commodities drop on fear over Fed announcement September 21, 2011 BRITAIN’S top shares dropped back yesterday, led by weakness in commodity issues as investors nervously awaited the outcome of a US Federal Reserve meeting with expectations for further economic stimulus seen as already discounted. The FTSE 100 closed down 75.30 points, or 1.4 per cent at 5,288.41, retreating after a two per cent bounce on [...]
US grim forecast spooks investors September 21, 2011 THE Federal Reserve’s warning that the US faces a grim economic outlook jolted investors yesterday, driving down US stocks more than two per cent, while benchmark Treasury yields hit a more than 60-year low on the Fed’s announcement of a $400bn bond-buying programme. The dollar rallied against the euro and the yen, buoyed by the [...]