Ø Red ink on Wall Street ! DJIA -4.2%, S&P500 -4.7%, NSDQ -4%.
Ø Dow closes under 7000 for first time since 1997. S&P at lowest point since Oct 1996.
Ø AIG Group posts largest corporate loss in
Ø HSBC plans a rights issue to raise GBP 12.5 billion. HSBC shares drop 19%!
Ø Warren Buffett says the economy will be in a "shambles" this year, and probably longer. Buffett's company, Berkshire Hathaway Inc, recorded its worst financial results ever in 2008.
Ø VIX rises 14% to 52.65
Ø Asian markets also lower. Australian CB unexpectedly holds its benchmark rate at 3.25%. Investors looking for yield turn back to the A$ and NZ$.
Ø Gold climbs back to $925 amid stock turmoil. The decline in the gold price over the past week is seen as excessive.
Ø Crude remains within a narrow range, bouncing between $40 > $45. Current level $40.4.
Ø Some stress seen again in money markets lending rates. Difference between 3 month Treasury rates and 3 month cash lending is at a 2 month high.
Ø $ slightly weaker at 1.2660 but € zone remains under pressure. Economic data is expected to push ECB towards a rate cut during its meeting on March 5th.
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