Global Economy: IS IT ON THE SKIDS? Part 2
The Dow Jones industrials fell more than 430 points. Treasury yields plunged as investors moved money into bonds.
The Dow Jones industrials final closing numbers for Thursday, July 26, 2007:
Down more than 310 points after earlier skidding nearly 450.
Investors who had been able to ward off discomfort associated with subprime mortgage issues and the distressing environment for corporate borrowing seem to finally have capitulate to those matters. The Dow exceeded the 416 points lost on February 27, 2007 after a nearly 10 percent decline in Chinese stock markets.
The declines triggered a global selloff in stocks, causing minor losses in Europe to accelerate rapidly along with the Dow's demise. In Europe, Britain's FTSE 100 closed down 3.15 percent, Germany's DAX index dropped 2.39 percent, and France's CAC-40 fell 2.78 percent.
Today's trading was the latest and most extreme in a series of delirious meetings over the past month — several also accompanied by triple-digit variations in the Dow — as investors worries about the subprime fallout began to sell or bought based on the optimism any widespread problems caused by mortgage failures would never happen. Financial analysts have described the back-and-forth, swing trading as neurotic, emotional, and based more on franatic, freaked out concern than careful contemplation of market and economic basics.
In late afternoon trading, the Dow plunged 434.97, or 3.16 percent, to 13,350. This is its largest one-day point drop since it lost 684.81 on September 17, 2001, the first day of trading after the September 11, 2001 alleged terror attacks.
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The Dow Jones industrials final closing numbers for Thursday, July 26, 2007:
Down more than 310 points after earlier skidding nearly 450.
Investors who had been able to ward off discomfort associated with subprime mortgage issues and the distressing environment for corporate borrowing seem to finally have capitulate to those matters. The Dow exceeded the 416 points lost on February 27, 2007 after a nearly 10 percent decline in Chinese stock markets.
The declines triggered a global selloff in stocks, causing minor losses in Europe to accelerate rapidly along with the Dow's demise. In Europe, Britain's FTSE 100 closed down 3.15 percent, Germany's DAX index dropped 2.39 percent, and France's CAC-40 fell 2.78 percent.
Today's trading was the latest and most extreme in a series of delirious meetings over the past month — several also accompanied by triple-digit variations in the Dow — as investors worries about the subprime fallout began to sell or bought based on the optimism any widespread problems caused by mortgage failures would never happen. Financial analysts have described the back-and-forth, swing trading as neurotic, emotional, and based more on franatic, freaked out concern than careful contemplation of market and economic basics.
In late afternoon trading, the Dow plunged 434.97, or 3.16 percent, to 13,350. This is its largest one-day point drop since it lost 684.81 on September 17, 2001, the first day of trading after the September 11, 2001 alleged terror attacks.
Visit Our Forum: Tell Us What You Think!
posted by You Think at 6:19 PM
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