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Bourses Stay Shaky

  • August 15th, 2007
  • Posted by EUEditor

euro-symbol-reduced3.jpgPrices on stock markets after some rises on Monday were falling again mid-week (15.8.07 in Australia).

Worries over liquidity and a “credit crunch” possibly in the offing caused sharp falls in Europe and on Wall Street on Tuesday local time – continuing a two-weeks’ trend.

Writers in the Financial Times said:

“Renewed turmoil in global money markets sent stock market prices falling around the world as traders ignored a declaration by Jean-Claude Trichet, European Central Bank President, that conditions were returning to normal.

“Traders were particularly alarmed by signs that the market for asset-backed paper – which provides $US 1500-billion (A$ 1804.7-billion; dcerates.com, 15.8.07) in short-term borrowings for big companies – was drying up …”

References:

Ralph Atkins in Frankfurt, Michael McKenzie in New York, Paul Davies in London, “ECB chief fails to reassure markets”, Financial Times, London, 14.8.07. http://www.ft.com (15.8.07)

See EUAustralia, “Another Rocky Week On The Bourses”, 11.8.07.

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