Bourses Stay Shaky
- August 15th, 2007
- Posted by EUEditor
Prices 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.