Wednesday, Oct 22, 2008
Stock markets around the world fell sharply again on Wednesday after concerns about economic recession and falling commodity prices were fueled by a fresh spate of gloomy corporate earnings.
Emerging markets were hardest hit by the global retreat and the fresh commodity pressure, with the U.S. dollar and government bonds the big gainers.
MSCI’s main index of emerging equities fell some 4.5 percent to its lowest level since June 2005, sharply underperforming the 2.45 percent loss in MSCI’s index of world stock markets.
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Global miner BHP Billiton warned on Wednesday that Chinese demand was set to weaken, echoing concerns last week from rival and takeover target Rio Tinto.
China said on Monday its annual economic growth fell to 9 percent in the third quarter from 10.1 percent previously and that factory output in September was at a six-year low.
“There is an increase in risk aversion. The emerging market world appears to be starting to collapse; that means it’ll be much more difficult for the global economy to recover,” said Peter Mueller, rates strategist at Commerzbank in Frankfurt.
This article was posted: Wednesday, October 22, 2008 at 4:31 am