Was a typo the trigger for the slump at? Source: AP
asd / HB NEW YORK. After the massive slump at Wall Street has begun the search for the cause. At the center are the shares of consumer goods group Procter and Gamble (PG), the consulting firm Accenture and the conglomerate 3MSaid the head of the New York Stock Exchange (NYSE), Duncan Niederauer, the television station CNBC. The Procter stock is clearly broken within minutes, but has subsequently recovered pretty quickly. Niederauer was, according to the stock for 90 seconds suspended from trading on the New York Stock Exchange. At the close of trading the paper was still well in the minus two percent and cost $ 60.75.
The group from Cincinnati, Ohio announced that they had no explanation for the slump. Procter had turned on the SEC to go to the cause on the ground. The NYSE investigated the incident. Accenture’s shares was briefly worth only a cent. CNBC reported that the failure of a trading desk Citigroup could be responsible with the burglary. The bank had initially but no evidence of improper trading activities, but I will initiate investigations, said a spokesman.
Already before the big break the mood on Wall Street was bad. Investors were disappointed that the European Central Bank (ECB) took no additional measures to prevent a widening of the debt crisis to other countries. "There is a malaise that seemingly is getting worse day by day because the fear of infection is increasing," said Craig Peckham, said strategist at Jefferies & Company. The ECB said it does not agree to buy Hellas bonds. Was reinforced the downward trend of disappointing retail numbers. Since no one knew, would be affected as much the other players of the problems around Greece, "banks are afraid to do business with each other," said Wayne Kaufman, chief analyst at John Thomas. "This is what the collapse of Lehman Brothers has led. "
The Dow Jones index of the default was a decline of 3.2 percent at 10 520 points from the market. He broke in the course of a trade more than nine percent, and commuted to 9869-10879 points. The broader S & P 500 index lost 3.24 percent to 1128 points. The index of technology exchange Nasdaq fell 3.44 percent to 2319 points. In Frankfurt the Dax was a decline of 0.8 percentage points in 5908 from the market.
The benchmark index lost afternoon against 15 clock (local time, 21 clock BST) temporarily almost 1,000 points compared to the previous day’s closing price. With the interim loss of more than nine percent reported the Dow Jones index of defaults even the biggest crash within one business day since its inception. The loss halved but in hectic afternoon trading to 470 points within minutes. The biggest rash down there, as traders saw pictures of new clashes in Athens, where the Parliament had already agreed to the drastic austerity program.
"The market now recognizes that Greece is going through in the next few years, a depression," said analyst Peter Boockvar Miller tobacco. "Europe is an important trading partner of us, and that threatens the entire global growth story." The U.S. oil prices came under massive pressure. In the top gave the price of a barrel of WTI grade by 6.7 percent to $ 74.58. The ounce of gold cost in New York more than $ 1,200.
In addition to the Dow broke the other major indexes at times one by up to nine percent. Whether a system error was the possible cause, as the television channel CNBC reported, was initially unclear. The New York Stock Exchange rejected this. The Nasdaq explained that she works together with other market operators to take the price decline under the microscope.
The focus of trade was once again the debt crisis in Greece. "This is panic selling," said Keith Springer of Capital Financial Advisory Services. Data from the U.S. retail also dampened the hopes of a quick economic recovery. "Although many people go to the shops, they seem to give out anything," said Tim Ghriskey, an analyst at Solaris Asset Management. Eleven of 17 retailers were back with their sales short of expectations, including leading retailers such as Costco Wholesale and discount stores, the chain Gap. Shares of Costco gave just under four percent, and that of Gap about seven percent.
News from Germany weighed on solar values. After the Bundestag had decided on Thursday the controversial reduction in solar subsidies, gave for solar stocks. Papers of Trina Solar fell 14 percent, Yingli Green Energy Holding eleven percent, and Suntech Power Holdings ten percent. Germany is the largest market for solar energy, and although the cuts have been expected for some time, had hoped for some analysts, they would be postponed.
The share of Freddie Mac fell to 6.3 percent of the quarterly figures. The nationalized mortgage finance is proving itself to the U.S. government as a bottomless pit. The company on Wednesday asked for a new billion loss by a further cash injection of $ 10,600,000,000 and warned that need to be because of the downturn in the housing market in the future additional help.
Under Pressure were also shares of broadband providers. The U.S. regulatory authority could give me their assurance that the market for Internet service providers want to continue to regulate only a little inappropriate. Shares of Comcast fall over six percent, from Time Warner Cable at eight percent and that of Cablevision System seven percent.
Springs were also the papers of major U.S. airlines. The shares of United parent UAL fell-nine percent of the merging parties Continental 7.6 percent. The market is worried that expanding the Greek debt crisis and could result in other industries affected, "said S & P analyst Jim Corridore.
On the New York Stock Exchange about 2.57 billion shares changed hands. 173 values, laid in 2998 gave way and 26 remained unchanged. At the Nasdaq closed on sales of 4.42 billion shares in the 330 Plus, 2418 in the red and 53 unchanged. To the U.S. credit markets, the ten-year government bonds rose by one point and 8 / 32 at 101-28/32. They yielded to 3.3975 percent. The 30-year bonds climbed three points and 14 / / 32 to 107-09/32, and had a yield of 4.1916 percent.
Euro falls below $ 1.26
The euro continued its decline continues unabated. The European single currency fell on Thursday evening under the mark of 1.26 dollars up to 1.2520 U.S. dollars. By the debt crisis of Greece and the increasing concerns about a spread to other countries in the euro area merchants fled to safe havens like the dollar. "This is panic selling," said Brian Dolan of Forex.com Currency strategist. "The debt crisis in Europe has brought the ball rolling and now there is only panic." During the Euro again made a little ground well, but hovered around the $ 1.26 mark.