Skip to content

Markets down over failed bailout plan

This has sent stocks crashing with the Dow Jones done a record 777 points (-6.98%) and NASDAQ down 199 points (-9.14%).  The Fed responded with increasing swap lines between central banks to $620 billion. Crude oil closed at $96.37 a barrel.

After the nationalisation of Bradford and Bingley, the GBP fell to a record 15 year low against the USD closing at 1.8080 after seeing a high of 1.8340.  Speculation suggests seeing a rise in the immediate future but then falling to 1.65 in 12-24 months.  

The Euro suffered a drop after Fortis was bailed out by Benelux central banks, although it did have a short boost after the US bailout was rejected and large amounts of US repatriation was seen.  Overall the EURO traded against the dollar with a high of 1.4635, low of 1.4303 and closed on 1.4400. Inflation in the Eurozone has dropped 0.2% to 3.6% in September compared to 3.8% in August.

With everyone searching for a safe haven, Gold ended the day at $906 an ounce.

Key figures out today are the GFK index which is forecast to drop to -39ldx from -36ldx. The GDP Q2 which is expected to be at a flat 0.0%.

Due out today from the US, the Chicago PMI is seen at 53.5, down from 57.9, with CB consumer confidence due to come in at 54.6 from its previous 56.9.

Related