Monday, August 08, 2011

Financial Markets - No Black Monday Yet

Latest UPDATE further down !

Far Eastern markets still sliding, but no "Black Monday" in sight. First reports from Asia after the opening of stock markets in Tokyo, Seoul and Sydney on Monday morning, August 8, 2011, 01:00 GMT, after a turbulent week characterized by U.S. debt crisis and European rescue actions for Greece, Spain and Italy.

By the way, the Chinese got really sour about U.S. handling of their own debt crisis, which can be understood in the frame of China's vast storage of U.S. treasury bonds. After the downgrading of U.S. rating, such papers naturally lost value.

UPDATE on August 8, 20:00 GMT:

In the frame of a dramatic decay of German DAX values during the last days and hours, BMW lost 8,8% and its competitor DAIMLER 7,1% compared to last week's stock market quotations. Even though, both German premium car manufacturers just presented another record of sound profits for the last year, they are now among such companies whose share prices are suffering most from the actual financial crisis. Share prices of Germany's giant producers of raw and processed chemicals as well as pharmaceuticals followed the trend. BASF lost 5,6% and BAYER 4,1% of their share prices. Clients are obviously selling all those premium values out of an uncertainty about the efficiency of handling national debt problems in the U.S. and Europe by those politicians in charge of solving such problems and whose ability to perform adequately seems to be doubtful. Such fear and mistrust towards the political establishment has been increasing steadily.

In South Korea, as well, a sound economy is suffering from eruptions of the stock market due to the meanwhile global debt crisis. At the end of the day, it turned out that Japan, so much shaken by earthquake and tsunami and severely hit by the Fukushima nuclear disaster, remained the sad "winner" among all those "losers" of the actual crisis.

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