U.S. Stocks Tumble On Credit Concerns
Investors’ fears were brought to life Thursday morning as news
surfaced that problems with the U.S. subprime mortgage crisis have
spilled over into Europe. Markets on both sides are taking a hit
as investors grapple with the ripple effects from a deeply
troubled U.S. lending market.
In a statement released this morning French bank BNB Paribas
announced they were forced to suspend three funds worth a total of
$2.75 billion in USD. The bank said that the “complete evaporation
of liquidity” in areas of the U.S. lending market was the culprit
behind the freezing of the funds.
BNB Paribas, the largest publicly held bank in France, stated that
the decision to temporarily suspend was due to “exceptional
times,” however they would re-open the funds as soon as liquidity
returns to the market. In an attempt to steady the financial
markets and to inject liquidity, the European Central Bank took
the highly unusual step of making available more than $130 billion
in overnight funds at a low rate of 4 percent.
Crude oil futures for September delivery fell
1% to $71.42 a barrel on concerns that reduced economic growth
will hamper fuel demand. Gold futures for December
delivery dropped 1.7% to $674.80 an ounce as investors sold
precious metals for cash to cover losses related to the U.S.
subprime mortgage collapse.
Around Asia, Shanghai’s Composite index rose once again adding
nearly 2% to 4,754.10, Hong Kong’s Hang Seng index lost 0.4% to
22,439.36, and Tokyo’s Nikkei index rose 0.8% to 17,170.60.
Join TradingMarkets Director of Education, Steve Primo, as he teaches a
number of quantitative strategies that can potentially give you an edge in your
trading.
Sign up now for one of our free training classes and start learning how to
become a better trader.
Stocks in Motion |
|
|
| Market Snapshot | ||||||||||||||||||||||||||||||||||||||||||||
|
|
Strongest/Weakest Industry Groups |
||||||||
|
Economic News |
|
|
Darren Wong
Associate Editor
darrenw@tradingmarkets.com
TradingMarkets subscribers have access to
16 quantitative
stock indicators and another
17 quantitative market bias indicators. These indicators are derived from
our proprietary database that includes millions of trades, and designed to give
you a short-term trading edge.
Each day, we provide free open access to one of these proprietary stock
indicators. If you would like to access all 16 stock indicators, 17 market bias
indicators, along with many other tools, click here for a free
7-day TradingMarkets trial.