How comfortable is wealth held in securities right now?
*Associated Press, by Toby Anderson, March 13, 2008:
Global [Securities] Markets Tumble
"LONDON (AP) - European and Asian markets tumbled and Wall Street
headed for a sharply lower opening Thursday as Carlyle Capital appeared
close to collapse, the dollar plunged against foreign currencies and
oil hovered near record highs.
In Europe, the U.K's benchmark FTSE 100 index dropped 1.9 percent to
5,667.5, while Germany's DAX slipped 2.4 percent to 6,443.59. In France
the CAC declined 2.5 percent to 4,579.56.
'U.S. dollar lows as well as record high oil prices are ... adding to
woes as the market begins to head south following strong gains at the
start the week,' said Nick Mitchell, a dealer at CMC Markets in London.
'Sentiment has also been hit today by the dollar falling below 100 yen
for the first time since 1995.'
Dow futures were down 164 points, or 1.4 percent, to 11,959, while the
Standard & Poor's 500 index futures were down 19.8 points, or 1.5
percent, to 1,289.6.
In Asia the dollar's drop to a 12-year low against the yen hammered
stocks of Japanese exporters such as Toyota and Sony. The Nikkei 225
index tumbled 3.3 percent to 12,433.4, its lowest in 2 1/2 years.
In late Tokyo trading, the dollar fell below 100 yen for the first time
since 1995, sinking as low as 99.75 yen.
Asian markets, which had rallied Wednesday on news of the U.S. Federal
Reserve's $200 billion relief plan for tight credit markets, resumed
their slide with growing sentiment that a U.S. recession is imminent.
'This is just an extremely nervous market given the uncertainties
overhanging the outlook for the world,' said David Cohen, a regional
economist with Action Economics in Singapore. 'The clouds are the
combination of the oil prices, the nervousness about the U.S. slipping
into recession and dragging down the global economy and ... the turmoil
in the credit markets that doesn't want to go away.'
Carlyle Capital Corp., managed by the Washington, D.C.-based Carlyle
Group, said late Wednesday it expects creditors to seize all the fund's
remaining assets after unsuccessful negotiations to prevent its
liquidation. The Amsterdam-listed fund shook financial markets last
week after missing margin calls from banks on its $21.7 billion
portfolio of residential-mortgage-backed bonds. Carlyle's troubles have
amplified fears that billions of dollars of depressed mortgage-backed
securities will flood the market, reducing their value even further.
Caryle shares plunged 70.3 percent to 83 cents in Amersterdam trading
Thursday."
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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