Markets bottom out after historic rebound
Posted Aug 10, 2011 8:56 am.
This article is more than 5 years old.
Wednesday’s opening bell was not the news many North American investors were expecting to see.
Markets tanked, responding poorly to the news that the U.S. Central Bank will be freezing its interest rate at record lows until 2013.
Analysts say officials essentially admitted the economic prospects for the United States are not good and the interest rate doesn’t solve the issue over the deficit crisis and the Eurozone debt issue.
The Dow fell 204 points at the start of the opening bell while the S & P 500 was down 20.
Things didn’t fair very well on this side of the border either with the TSX opening to a decline of 51 points.
Analysts believe oil prices may put Bay Street on more solid ground as crude continued to gain ground during the overnight hours.
Asian markets managed to maintain momentum before the tumble, all closing in positive territory.
The most notable gain was Hong Kong with the Hang Seng Index up 452.97, while the Nikkei rose 94.26 points.
European markets were in a strong position to follow suit until the North American bell.
Both London and Frankfurt numbers fell sharply, with the FTSE sitting at a loss of 42 points and the DAX down 63 by 7:30 a.m. MST.
Until the tumble, the DAX was in a position to break its longest losing streak since the 1970’s.
Gold was the one big winner for numbers as it continued to soar overnight, and was up $26 at the start of the trading day.
