Investment of Mine

Closing bell of the stock market:
Nikkei 225  -115.05 -1.40% 8,397.22
Topix - 7.35 -0.90% 827.47
FTSE    -222.52    -5.19%    4,065.49
DAX    -274.65    -5.88%    4,394.79
CAC    -182.25    -5.59%    3,080.43
Dow    -679.95    -7.70%    8,149.09
NASDAQ    -137.50    -8.95%    1,398.07
S&P    -80.05    -8.93%    816.19
10yr Note    -2.3800    -0.805%    2.719%
NYMEX Crude Oil    -5.15    -9.46%    49.28
Gold    -42.20    -5.15%    776.80

On Monday Japanese stock markets closed with losses due to the apprehensions of losses growth because of the not getting back the credits and unemployment growth. This happened after the bankruptcy of the house building company Morimoto Co. has lead the general number of bankruptcies among the companies whose stocks trade on the stock markets of the country to the postwar record. The stocks of the Mitsubishi Estate Co. – Japanese second largest developer – fell by 5.6%. Japan General Estate Co. collapsed by 14% after the toughening of the budget has made the company to revise the number of vacancies. The stocks of the country’s largest oil-gas company Inpex Corp. lost 4.4% after the announcement about the record fall of the production activity in China which has provoked the apprehensions as for the further reduction of demand for the raw materials. According to the Department of Labor’s data, in October for the first time during this year the reduction of the salaries was observed. Besides, it has become known that the whole string of the companies, namely Toyota Motor Corp. and Sharp Corp., are planning the reduction of the staff. The stocks of the Sanyo Electric Co., the world’s largest accumulators producer, skyrocketed by 8.6% after the Kyodo News’ announcement that the Panasonic Corp. may buy a part of the Company, the controlling interest of which is owned by the investors, the Goldman Sachs Group Inc. being at the top of the list.

On Monday European stock markets suffered losses as well. The record fall of activity in Eurozone and China’s industrial sectors became one more signal of the deepening of the world’s economy recession. The stocks of the ArcelorMittal, the world’s largest steel producer, collapsed by 12%, and those of the British bank Barclays Plc. fell by 6.7% after the announcement about the fall of housing prices in Great Britain to the level of January 2006. The stocks of the BP Plc. and Royal Dutch Shell Plc., the regions largest oil companies, fell by more than 5% after the oil price has reduced to $50 per barrel. The stocks of the BHP Billiton Ltd., the world’s largest mining company, lost 9%, and those of its competitor Rio Tinto Group collapsed by 11% in the course of the reduction of metal prices. The copper supposed to be delivered in March went 1.3% cheaper to $1.6285 per pound.

The trading session on the American stock market closed by a serious reduction of indices. Indices started the first day of December negatively due to the active sales in the goods and commodities sector and weak economic data.
Business activity index in the industrial sector (Nov mfg ISM) in November is 36.2 against 38.9, and the expenses on the building fell by 1.2% in October.
The goods and commodities sector was pressed by the sales on the markets of oil (-6.6% to $50.88 per barrel) and gold (-5.0% to $775.50 per ounce). The oil price collapsed after last week the OPEC made a decision to retain the volumes of the oil production unchanged. In the course of his speech the chairman of the FRS Ben Bernanke the stock indices renewed the session minimums.
The head of the US central bank announced that “the further reduction of the interest rate from the present level of 1% is very likely. But the possibilities to conduct the usual policy of interest rates are restricted”.

This entry was posted on Tuesday, December 2nd, 2008 at 7:40 am and is filed under Finance Review. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.