Global stock markets shaken by panicked sell-offs
- 7th October 2008
THE Australian share market is set to fall at the open after world stock markets plummeted on Monday as panic-stricken investors doubted whether a Wall Street bailout package would stem the global financial crisis.
At 0714 AEDT, the December Share Price Index futures contract on the Sydney Futures Exchange was down 178 points at 4,388.
On Tuesday, the Reserve Bank of Australia (RBA) is expected to announce a half a percentage point cut in official interest rates, following its monthly board meeting.
Economists have forecast the RBA will cut official interest rates by up to 50 basis points in response to global financial turmoil, lowering its benchmark rate to 6.5 per cent.
Other economic data out Tuesday includes the SAI Global/ACCI quarterly survey of investor confidence, the Seek employment index data for September and the Australian Industry Group/Housing Industry Association performance of construction index data for September.
In equities, Euroz Ltd holds its annual general meeting in Perth and Artist & Entertainment Group Ltd holds an extraordinary general meeting.
In Melbourne, HBOS Australia chief executive David Willis addresses an Australia-Israel Chamber of Commerce lunch.
The Australian share market closed at its lowest level in almost three years Monday, falling over three per cent on thin trading due to public holidays in NSW, ACT and South Australia.
The benchmark S&P/ASX200 index was down 155 points, or 3.3 per cent, at 4,540.4, while the broader All Ordinaries index shed 158.1 points, or 3.36 per cent, to 4,544.7.
Global markets
NEW YORK - Global stock markets reeled Monday, shaken by massive sell-offs by panicked investors.
On Wall Street, the Dow Jones Industrial Average fell below the psychologically key level of 10,000 points for the first time since October 2004.
By late afternoon, the Dow Jones Industrial Average had fallen 575.37 points, or 5.57 per cent, to 9,750.01.
The tech-heavy Nasdaq slumped 116.8 points, or six per cent, to 1,830.59 and the broad-market Standard & Poor's 500 index shed 47.09 points, or 4.28 per cent, to 1,052.14.
LONDON - European stock markets posted massive losses of 7.0 to 9.0 per cent by the close Monday on fears for the health of the European banking system as a global financial crisis deepened.
The London FTSE 100 index of leading shares fell 391.06 points, or 7.85 per cent, to finish at 4,589.19 points.
FRANKFURT - In Germany, the benchmark DAX was down 410.02 points, or 7.07 per cent, at 5,387.01 points.
PARIS - In France, the CAC 40 fell 368.77 points, or 9.04 per cent, to 3,711.98 points.
TOKYO - Japan's Nikkei stock average tumbled 4.25 per cent to a four and a half year closing low on Monday after falling five per cent at one point as investors, spooked by signs of growing global economic gloom, dumped shares across the board.
The benchmark Nikkei shed 465.05 points to 10,473.09.
HONG KONG - The benchmark Hang Seng index fell 878.64 points, or 4.97 per cent, to 16,803.76.
WELLINGTON - The New Zealand sharemarket fell on worries about the wider economic outlook rather than just the meltdown of the US and European financial sectors.
The NZX-50 index closed down 103.162 points, or 3.273 per cent, at 3048.377.
- © AAP
