Stock market shaken again by Claudia Sonea

After the changes occurred on Friday and Monday, before Fed's meeting, stock market is troubled again, this time by concern regarding US sub prime mortgage sector. Because the European Central Bank injected 94.8 billion euros (130.2 billion dollars) into the eurozone banking market, a record number, all the investors back off, US property crisis becoming a real risk. Chief market strategist at London-based spread-betting group City Index stated that the bank's action was meant to create panic. When French bank BNP Paribas suspended three investment funds for the US property market and German lender WestLB faced liquidity problems, ECB decided that the banks affected by the US sub prime mortgage crisis needed a wave of cash. It was higher than after September 11, 2001, after the terrorist attacks. Japanese share prices index rose 0.83-percent before BPN announcement. Chinese shares prices had a record gain, five days in a row. World oil prices had losses, only in London the barrel fell below 70 dollars and that because the debts to US economic woes, might have been weaken by the energy demand. All in all, global equity prices plunged and the actions taken by the ECB made it worst. With the fear of US property value decreasing and Wall Street in decline, European markets closed 2.0 percent lower. What will happen next is still a mystery and how it is to be expected the market will continue to be shaky. It's a period of financial instability. Stay connected, there is more to come!

related story: http://uk.news.yahoo.com/afp/20070809/tbs-stocks-world-65f2640_1.html

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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