Global Stock Sell-Off Follows Today’s 512 Point Crash Of The DOW

Global Stock Sell-Off Follows Today’s 512 Point Crash Of The DOW


Massive global stock sell-off follows today’s 512 point crash of the DOW, which was the worse drop since the 2008 Financial Crisis and the 9th worse ever.

Alexander Higgins
August 4th, 2011

The Dow Jones Industrial average crashed 512 points to lose 4.31% of its vale marking the worse drop since the December 2008 financial crash and the 9th worse day ever for the the index. The NASDAQ dropped 5.08% down 136.68 and the S&P was down 60.27 points shedding 4.78% of its value. Today’s crash put all of the major indices in negative territory for the year.

Gold has retreated back to 1,650 per ounce after hitting an all-time high of over $1,680 per ounce earlier today. It is still above it’s lower resistance level and the move earlier broke an upper resistance level of $1,670.

Dow Crashes 512 Points - Worse Since 2008 Financial Collapse, 9th Worse Drop Ever

Yahoo Finance reports:

Dow falls 512 in steepest decline since ’08 crisis

Worst day for Wall Street since 2008 crisis: Dow falls 512 and investors flee for safety

NEW YORK (AP) — Gripped by fear of a new recession, Wall Street suffered its worst day Thursday since the financial crisis in the fall of 2008. The firestorm of selling that erased more than 500 points off the Dow Jones industrial average then spread overseas.

The sell-off wiped out the Dow’s remaining gains for 2011. It put the Dow and broader stock indexes into what investors call a correction — down 10 percent from their highs in the spring.

In Friday trading in Asia, Japan’s benchmark Nikkei 225 stock average was down more than 3 percent and Hong Kong’s Hang Seng shed 4 percent.

“We are continuing to be bombarded by worries about the global economy,” said Bill Stone, the chief investment strategist for PNC Financial.

Across the financial markets, the day was reminiscent of the wild swings that defined the financial crisis in September and October three years ago. Gold prices briefly hit a record high. Oil fell even more than stocks — 6 percent, or $5.30 a barrel. And frightened investors were so desperate to get into some government bonds that they were willing accept almost no return on their money.

It was the most alarming day yet in the almost uninterrupted selling that has swept Wall Street for two weeks. The Dow has lost more than 1,300 points, or 10.5 percent. By one broad measure kept by Dow Jones, almost $1.9 trillion in market value has disappeared.

For the day, the Dow closed down 512.76 points, at 11,383.68. It was the steepest point decline since Dec. 1, 2008.

Thursday’s decline was the ninth-worst by points for the Dow. In percentage terms, the decline of 4.3 percent does not rank among the worst. On Black Monday in 1987, for example, the Dow fell 22 percent.


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In related news Asian markets have followed the U.S markets in early trading and the Financial Times reports the Global stock sell-off continues.

Friday 03.50 BST. Asian stocks tumbled as fears rose that the global economy may be heading for a recession with the European debt crisis spreading and the US economy slowing, enduring a heavy sell-off as investors shun risk after global central bankers failed to stem fears of rapidly slowing growth.

Following the biggest decline since the financial crisis for both the S&P 500 index and US Treasury yields, the MSCI Asia Pacific index dropped 3.8 per cent, down more than 10 per cent from its May peak. Japan’s Nikkei 225 Stock Average plunged 3.8 per cent to its lowest levels in more than four months. South Korea’s Kospi Composite index fell 3.5 per cent, plumbing its lowest intraday levels since March. Australia’s S&P/ASX 200 declined 3.8 per cent to a two-year low.

[…] Oil futures fell more than 1 per cent to about $85 a barrel in electronic trading on the New York Mercantile Exchange, having dropped more than 5 per cent on Thursday.

[…] Gold moved 0.2 per cent higher to $1650 per ounce in Asian trading, remaining close to its record highs.

[…] China’s Shanghai Composite index shed 2.3 per cent as commodity producers, property developers and banks slid on fears of a double-dip recession in the global economy.

[…] Hong Kong’s Hang Seng index was off 4.8 per cent

[…] Taiwan’s Taiex index plunged 4.3 per cent with Chimei Innolux,

[…] In Indonesia, the Jakarta Composite was down 5 per cent


Source:The Financial Times

Here’s a snapshot of the Asia markets as they stand right now.

Asia Markets Crash Following Dow's Historic 512 Point Drop Today

Categories: ECONOMY

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