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Market Review - 12/11/2008 22:17 GMT
Japanese yen rallies on selloff in U.S. stock markets as Paulson diverts bailout money
Japanese yen rallied against major currencies on renewed risk aversion due to the global selloff in equities as U.S. Treasury Secretary Henry Paulson heightened concerns about the economy. The greenback, euro, sterling and aussie tumbled against the Japanese yen from 98.08 to 94.48, from 123.86 to 118.10, from 151.77 to 141.06 and from 65.33 to 60.88 respectively.
U.S. Treasury Secretary Paulson said the purchase of mortgage assets is not the most effective way to use funds under the Troubled Asset Relief Program. The Treasury and the Federal Reserve are exploring a new ‘facility’ to aid the market for securities backed by assets.
Dow Jones industrial average dropped by 411 points or 4.73% to end at 8282.66. The Standard & Poor’s 500 index tumbled by 46.64 points or 5.19% to close at 852.31. The Nasdaq Composite index was down 81.69 points or 5.17% to finish at 1499.21.
The single currency remained under pressure after the release of eurozone industrial production data which fell by 1.6% in September, more than the expectation of a decrease of 1.3%.
The British pound tumbled sharply from 1.5482 to 1.4894, its weakest since 2002, after BOE Governor Mervyn King said the bank was prepared to cut rates even more after a stunning 1.5% cut last week. A quarterly Bank of England report predicted the U.K. economy will shrink sharply next year and inflation may fall below 1%.
Thursday will see the release of Japan's domestic CGPI and industrial production, German GDP deflator, U.S. trade balance, jobless claims and Fed budget.
Japanese yen rallies on selloff in U.S. stock markets as Paulson diverts bailout money
Japanese yen rallied against major currencies on renewed risk aversion due to the global selloff in equities as U.S. Treasury Secretary Henry Paulson heightened concerns about the economy. The greenback, euro, sterling and aussie tumbled against the Japanese yen from 98.08 to 94.48, from 123.86 to 118.10, from 151.77 to 141.06 and from 65.33 to 60.88 respectively.
U.S. Treasury Secretary Paulson said the purchase of mortgage assets is not the most effective way to use funds under the Troubled Asset Relief Program. The Treasury and the Federal Reserve are exploring a new ‘facility’ to aid the market for securities backed by assets.
Dow Jones industrial average dropped by 411 points or 4.73% to end at 8282.66. The Standard & Poor’s 500 index tumbled by 46.64 points or 5.19% to close at 852.31. The Nasdaq Composite index was down 81.69 points or 5.17% to finish at 1499.21.
The single currency remained under pressure after the release of eurozone industrial production data which fell by 1.6% in September, more than the expectation of a decrease of 1.3%.
The British pound tumbled sharply from 1.5482 to 1.4894, its weakest since 2002, after BOE Governor Mervyn King said the bank was prepared to cut rates even more after a stunning 1.5% cut last week. A quarterly Bank of England report predicted the U.K. economy will shrink sharply next year and inflation may fall below 1%.
Thursday will see the release of Japan's domestic CGPI and industrial production, German GDP deflator, U.S. trade balance, jobless claims and Fed budget.
