Sep

16

Havoc in universal markets pick up again

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Subsequent to the crumple of fourth largest US investment bank, Lehman Brothers that has filed for bankruptcy protection losses on stock markets have continued. With the UK’s FTSE 100 and Germany’s Dax both down 1.7 percent the European market started their day with stridently lower for a second day.

Markets of Japan, South Korea and Hong Kong were closed on Monday for a pubic holiday and today shares in those fell by over 5 percent. Lehman is the most recent sufferer of the credit crunch and is expected to sell its core assets to Barclays.

In morning trading FTSE 100 of foremost UK shares knock down 91 points to 5,113. On Monday, US stock market had its most horrible day’s trading as the Dow Jones index closing the day down 504.48 points, or 4.42 percent.

Japan’s benchmark Nikkei 225 index touched its three years low point and plummeted 5 percent. Shanghai’s index fell by about 3 percent and shares in South Korea and Hong Kong drop nearly 6 percent in value.

Asia’s central banks took the steps similar to their US and European counterparts to calm down the critical market. While Australia and India pumped cash into their money markets, The Bank of Japan brings in 2.5 trillion yen into the banking system. In an attempt to reassure markets and to help calm down crisis The US Federal Reserve has broadened its emergency lending scheme.