Monday, October 06, 2008

Panic takes over …

AFP is headlining: "Panic grips world stock markets". It reports that world stock markets have plummeted, striking four-year lows, as panic-stricken investors doubted whether a Wall Street bailout package would stem the global financial crisis.

London, Frankfurt and Paris all tumbled more than six percent before pulling back slightly while a 15-percent dive in Moscow forced yet another halt to Russian trading. "There is all-out panic," said ING senior strategist Adrian van Tiggelen… Everyone had hoped that after the acceptance of the package in the US and the bailouts in Europe, things would calm down but in effect, there are still strong fears of the domino effect."

"We have a seriously weak and fear driven market at our hands," said Tom Hougaard, chief market strategist at City Index. "It is anyone's guess where we will end the day." And so it goes on.

  • Other posts on the financial crisis here.