US Stock Markets Lead To Global Sell Offs
September 6, 2007
The US stock markets have today returned to poor trading, with significant losses on both exchanges leading to worldwide sell offs.
The results came off the back of news that the US economy is in for a significant slowdown over the remained of this year, according to figures released today.
The impact of the sub-prime lending market, with the added weight of the sluggish housing market is expected to make its full extent known over the remainder of this year, still with no indication as to the potential damages lenders could be facing.
Furthermore, with sub-prime exposure still growing in some areas, investors have lost all confidence after what has been a few days of modest but volatile positive trade.
The leading exchange in New York, the Dow Jones traded well down, losing 143.39 points on the day to close at 13305.5 at the bell.
The smaller, tech-based NASDAQ exchange also traded poorly, losing 24.29 points to close at 2606.0, compounding the negative trading from its larger sister exchange. The S&P 500 exchange was down 17.13 points to 1472.3.
The knock-on effect of this was to stimulate major sell offs across European markets, which until today had enjoyed some relatively good trading performances this week.
In London, the FTSE 100 was down by 106.10 points, closing 6270.7 on the index through the close of play, reflecting the same extent of the losses suffered stateside after the gloomy analysis of the future of the worldwide economy.
The CAC 40 exchange in Paris was among the day’s biggest losers, shedding 121.17 points through trade to close at 5551.6.
Meanwhile in Frankfurt, the Dax exchange closed down 133.74 points to 7588.0, with analysts predicting markets could trade positively after interest rate decisions from London and Brussels are announced tomorrow.
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