World Stockmarket report at time of psychiatric expiry -- jotter

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Date Posted: 14:36:57 10/19/08 Sun
Author: 17/10/2008
Subject:

World Stockmarket report at time of psychiatric expiry
In reply to: To and including: Wednesday, 12 November 2008 's message, "From and including: Thursday, 20 October 2005 It is 1120 days" on 14:13:15 10/19/08 Sun

US Stocks Surge Ahead of Options Expiration

This time, the last hour's surprise came in the form of a surge instead of a plunge in what one trader attributed to the impending expiration of equity and index options on Friday.

Stocks slid early after manufacturing data heightened fears about the depth of a likely recession. US industrial production declined by 2.8% in September, the biggest contraction since the wake of the 1973 to 1974 oil embargo, the Federal Reserve reported just before the opening bell. That dire report was echoed by a manufacturing index from the Philadelphia area, often seen as a test case for the industrial economy. At one stage, the Dow Jones Industrial Average was down by 380 points, breaching its five-year closing low. Just before 3 p.m. EDT, the Dow started building on modest gains, and was up by 300 points about 20 minutes before the final bell.

The Dow Jones Industrial Average closed up 401.35 points (4.68%) to 8,979.26, recovering more than half its 733-point loss from Wednesday. The Dow is up 6.3% for the week after a record point gain Monday. The broad Standard & Poor's 500 added 38.59 (4.25%) to 946.43, for its fourth biggest percentage increase this year a session after its biggest plunge since Oct. 19, 1987. The technology-oriented Nasdaq Composite rose 89.38 (5.49%) to 1,717.71, its second biggest percentage gain of the year.

Traders say jarring rallies are typical of markets recovering from crash-like selloffs. In 1987, Black Monday was followed by a whiplash rally that Tuesday and another plunge the following Monday. The heightened nerves in the market change the paradigm to one where 5% swings on the Dow are easily triggered. The Chicago Board Options Exchange volatility index, which is called the "fear gauge" because it reflects premiums paid to protect against more swings, hit a record high above 80 on the session. Later, it retreated to close down 2.4% at 67.61.

One possible explanation for Thursday's sudden surge: traders covering positions ahead of options expiration. A lot of trades, including arbitrage between index options and stock prices trigger markups at the end of the trading day, particularly around expiration, said one trader.

Wal-Mart Stores led the rally for the Dow and other consumer stocks surged. Oil prices dipped below the $70 mark Thursday for the first time in more than a year because of surprisingly high stockpiles, adding to fears that the economic slowdown would hurt demand. Yet many commodities stocks recovered some of their recent losses because of earnings growth from coal miner Peabody Energy and steel maker Nucor.

Citigroup fell 33 cents (2%) to $15.90, the second biggest decliner on the Dow. Citi swung to a $2.81bn third-quarter loss, this time weighed down by losses on consumer loans more than market-based events, another sign that the current crisis has moved from Wall Street to Main Street.

For Australian ADRs listed on the NYSE, BHP Billiton rose 84 cents (2.39%) to $36.01, Rio Tinto Plc firmed $3.73 (2.42%) to $158.00, News Corporation added 55 cents (6.24%) to $9.36, ResMed shed 88 cents (2.48%) to $34.57, Telecom Corporation of NZ advanced 12 cents (1.76%) to $6.92 and Westpac increased $11.46 (17.03%) to $78.76.

In economic news, a mix of plunging US industrial production rates not seen since the 1970s and flat consumer prices suggests Fed officials will most likely have to lower interest rates even further to prevent a severe economic recession. Jobless claims fell by 16,000, the second decline in a row and further than the 13,000 drop economists expected.

Economic fears and still unsettled financial markets continued to fray investor nerves Thursday, keeping US Treasuries bid. At 7:45 AM (AEST), the 10-year Treasury note was down 5.6 basis points to 3.96% and the five year note was down 5.7 basis points to yield 2.83%.

Shares in Europe plunged, barely escaping a fresh five-year low on Thursday, as fears about a forthcoming global recession outweighed more moves from central banks to shore up the financial system.

The pan-European Stoxx 600 index fell 5% to 206.40, bringing losses since Tuesday to roughly 12%.

On a national level, the UK FTSE 100 index fell 5.4% to 3,861.39, again falling below the 4,000 level. The German DAX 30 index dropped 4.9% to 4,622.81 and the French CAC-40 index tumbled 5.9% to 3,181.00.

Central bankers and governments around the world have been trying to shore up the banking sector in order to limit the spillover to global economic growth.

Those efforts continued on Thursday as Swiss authorities said that they would set up a fund to take up to $60bn of assets off UBS's balance sheet and invest 6bn francs (US$5.25bn) in the world's biggest asset manager. Shares of UBS couldn't hold early gains and closed 4.9% lower.

Credit Suisse also turned lower, finishing the day down 0.9%, after it said it's also going to raise capital, but from private investors. The bank expects to report a loss in the third quarter.

Also, the Bank of England said it will launch a new discount window facility on Monday as well as a new overnight standing lending facility.

Shares in Dutch postal group TNT fell 13.4% after the company said that trading conditions at its European Express business worsened significantly in September as volatility in financial markets accelerated recessionary trends. The firm will revise its 2008 outlook later in the month, it said.

Shares in Thomson SA dropped 13.4% as the world's largest provider of TV set-top boxes reported a below-forecast 13% drop in third-quarter sales, although it said it still expects to meet refinancing terms at the end of the year.

Shares in Nokia finished 5.9% lower in Helsinki after briefly trading in positive territory. Nokia posted a 30% drop in third-quarter profit and a 5% decline in sales, but managed to improve gross margins at its all-important device division and reiterated its outlook.

On the FTSE 100, Rio Tinto lost 307.00 pence (13.03%) to 2,305.00 pence and BHP Billiton dipped 105.00 pence (11.46%) to 828.75 pence.

Asian markets were battered Thursday, with Tokyo suffering its worst loss in 21 years, as traders were spooked by renewed fears of a global recession.

Japanese shares slumped by 11.41%. The Nikkei lost 1,089.02 points to end at 8,458.45, wiping out most of its gains earlier in the week.

With fears growing of a recession in Japan, an $18bn package to stimulate the economy was enacted soon after being passed in the upper house.

Hong Kong share prices closed 4.8% lower. The benchmark Hang Seng Index closed down 767.78 points at 15,230.52 after a rollercoaster session.

Chinese share prices closed down 4.25%. The benchmark Shanghai Composite Index, which covers A and B shares, was down 84.73 points at 1,909.94.

Concerns about global corporate earnings in the wake of the financial markets turbulence hammered global equities and took New Zealand shares sharply lower Thursday. The NZX-50 Index fell 4.8%, or 139.95 points, to 2,764.68 - the lowest level since September 2004. Volume was modest.

Base metals traded on the London Metal Exchange traded to fresh multiyear lows as financial troubles and economic growth concerns continue to be priced into the industrial metals.

Base metals on the LME finished mixed. Aluminium rose $35 (1.62%) to $2,200 while copper fell $205 (4.25%) to $4,620 and nickel weakened $550 (4.68%) to $11,200. Zinc dropped $100 (7.63%) to $1,210 and lead shed $125 (8.31%) to $1,380. Comex copper was last quoted at 209.90 US cents per pound.

Gold and other precious metals tumbled Thursday on fund liquidation, with technical selling exacerbating the falls, traders and analysts said. Spot gold was last quoted at $804.50. Comex gold futures slid $34.50 (4.11%) to $804.50. Spot silver was last quoted at $9.65.

West Texas Intermediate was last quoted at US$69.85 per barrel.

The dollar was higher against the euro Thursday despite more recession-like US economic data, as a drop in oil prices led investors to quit bets on commodities and return to the refuge of the US currency.

At 08:12 a.m. (AET) the US dollar was quoted at 0.7426 euros, 101.65 yen and 57.82 pence.

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Replies:

The study I read by professionals is wrong clearly so it states moon no effect -- just on enternatment alone, 14:45:33 10/19/08 Sun

the tv set and radio run on Dalylight savings times -- come in part as a process of the moons revolutions, 14:46:46 10/19/08 Sun