On Dec 17 2007, 7:26 pm, kangarooistan wrote:
=2E
> When the super funds tell their pensioners the real value of the
> garbage Howard ordered them to buy to support USA business rip off ,
> the yanks sold them all the lemons and USA bought all the real money
> makers
=2E
>
> Aussies sure are dumb bastards
>
> the yanks are cleaning them out still and most still dont even notice
>
> Yanks have perfected the art of pick pockets
>
> Lift 53 billion in a day and aussies hardly even noticed
=2E
Recession fears hit stock markets
Japanese businessman walks past stock market display board
Many investors are wondering if stock markets are overvalued
European and Asian shares have fallen on continuing fears of a US
recession and slowing corporate profit growth.
The UK's FTSE 100 stock index fell 1.3% to 5946.40, while Germany's
Dax and France's Cac fell about 1%.
Earlier, Japan's Nikkei index had fallen to its lowest in more than
two years, closing 3.4% lower at 13,504.51.
The slide in share prices was triggered on Tuesday by a quarterly loss
at US bank Citigroup and a report showing weak US retail sales over
Christmas.
Indexes tumbled on the news, with the UK FTSE 100 index shedding 3% on
Tuesday and the negative sentiment seeping into Wednesday.
Analysts warned that more declines may be on the way as concerns about
the corporate and economic environment persist.
"The fallout from the Citigroup result is significant," said Trent
Muller of ABN Amro Morgan.
"We will see a bit of panic selling with a lot of investors taking
cash off the table today."
Francis Lun of Fulbright Securities said that problems in the US,
where a slump in the housing market and higher interest rates have
amplified concerns, would continue to stalk the markets.
"American financial mismanagement has brought us to this economic
meltdown," Mr Lun said.
Mortgage market
Many investors are now predicting that interest rate cuts will be
needed to keep the US economy going, and the US dollar fell as a
result.
Investors tend to seek out currencies and assets in nations with
higher interest rates as that increases their returns.
On Tuesday, Citigroup said that it had made a net loss of almost $10bn
(=A35bn) for the last three months of 2007 because it had to cut the
value of investments that were linked to the US housing market.
The bank, one of the biggest in the world in terms of assets, said the
loss had been caused by an $18.1bn exposure to bad mortgage debt.
This reinforced the extent of the housing crisis in the US, while
spurring worries that other banks were still harbouring undisclosed
losses.
On Wednesday, Germany's Dax was trading down 0.9% at 7498.20, while
France's Cac shed 1.2% to 5189.99. Hong Kong's Hang Seng closed almost
4% lower.
>
> Back again for more tommorrow ????
>
> kanga
>
> =3D=3D=3D=3D
>
> $53 billion wiped off stock market
> 17th December 2007, 15:00 WST
>
> The Australian stock market plunged 3.5 per cent today, wiping $53
> billion from the value of stocks in the biggest one-day fall in four
> months.
>
> The big drop followed an earnings downgrade by Centro Property Group,
> which caused carnage among local property trusts.
>
> The day had already got off to a bad start after high inflation
> figures in the US dimmed hopes of rate cut there, prompting a big fall
> on Wall Street.
>
> Centro, which is Australia's second biggest owner of shopping centres,
> tumbled over 75 per cent after higher funding costs triggered by the
> US sub-prime mortgage crisis forced it to slash its distribution
> guidance.
>
> At the 2.15pm Perth time close, the benchmark S&P/ASX200 index was
> down 228.2 points, or 3.52 per cent, to 6263.5.
>
> The All Ordinaries shed 224.3 points to 6331.8 equating to a single
> day loss of about $53 billion from the value of stocks in the index.
>
> On the Sydney Futures Exchange, the December share price index
> contract dropped 233 points to 6268 on a volume of 70, 611 contracts,
> according to preliminary figures.
>
> Today's fall on the Australian share market was the biggest since
> August 10, when the S&P/ASX200 index fell 229.6 points, or 3.72 per
> cent, to 5936.
>
> Centro today dropped $4.34, or 76.14 per cent, to $1.36.
>
> Nomura Australia equity markets specialist Eric Betts said the news
> from Centro was probably worse than people expected.
>
> "Property trusts are down 11 per cent, the biggest one-day fall as far
> I can remember," Mr Betts said.
>
> "In recent years, all the property trusts, to an extent, followed a
> similar path of expanding overseas and also increasing their gearing.
>
> "They will have various debt maturity profiles, but when they have to
> refinance their costs will go up."
>
> The local market had already opened one per cent lower this morning
> after the Dow fell 1.32 per cent on Friday.
>
> Centro Retail Group lost 57.5 cents, or 40.35 per cent, to 85 cents,
> Goodman Group lost $1.43, or 25.72 per cent, to $4.13, and the
> Macquarie DDR Trust lost 16.5 cents, or 16.1 per cent, to 86 cents.
> Another big loser was Valad Property Group, which dropped 27 cents, or
> 17.76 per cent to $1.25. Westfield lost $1.20, or 5.78 per cent, to
> $19.57 and GPT Group lost 38 cents, or 8.74 per cent, to $3.97.
>
> ING Industrial Fund lost 19 cents, or 7.36 per cent, to $2.39, Lend
> Lease lost $1.00 to $17.90 and Macquarie Office Trust dropped 11.5
> cents, or 7.6 per cent, to $1.395.
>
> Elsewhere in the market, mining giant BHP Billiton dropped $1.68, or
> four per cent, to $40.37 and Rio Tinto reversed $5.39, or 3.93 per
> cent, to $131.85.
>
> In the banking sector, St George was a big loser, falling $1.55, or
> 4.41 per cent, to $33.61. Commonwealth Bank was down 74 cents to
> $60.00, National Australia Bank was down 95 cents to $37.50, ANZ was
> down 65 cents to $26.95 and Westpac was down 70 cents to $28.30.
>
> Macquarie Group lost $3.98, or 4.97 per cent, to $76.10, Babcock &
> Brown shed $1.22, or 4.45 per cent, to $26.20.
>
> Allco Finance Group, which is buying property trust Rubicon Holdings,
> jettisoned 63 cents, or 8.89 per cent, to $6.46.
>
> Challenger Financial Services Group fell 49 cents, or 8.69 per cent,
> to $5.15.
>
> Woodside Petroleum lost 66 cents to $46.95 on a falling oil price, and
> Newcrest Mining dropped 1.58, or 4.75 per cent, to $31.67 as the spot
> price of gold reached $US793.50 per fine ounce, down $US9.10 on
> Friday's close of $US802.60 per fine ounce.
>
> Telstra fell nine cents to $4.62 and its instalment receipts were down
> seven cents to $3.09.
>
> News Corp lost three cents to $24.25 and its non-voting scrip lost 11
> cents to $23.24.
>
> The top traded stock by volume was Centro with 120.3 million shares
> worth $211.69 million changing hands.
>
> Preliminary market turnover was 2.05 billion shares worth $7.19
> billion with 219 stocks rising, 1209 falling and 285 unchanged.
>
> AAP
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