Asian’s Inquietude Dark covers NewYork dusty streets, while sunshine splashes this Asian city. Traders in the city jump into roily currency and stock-markets, colleagues in NY at the same time still fall in profound sleep. Shocked by that burning scene, global investors care about a same question: what will taken place in financial area, the next.
Japanese market first falls 788 points, -7.6%, to show their overly worries.
Reflects to exchange rate, Yen strongly beats dollar. But Japanese is willing to show their weakness. Japanese authorities express that they prefer a lower exchange rate to dollar which will benefit their commerce, and they might intervene the rate if necessary. Since Yen/dollar has so limited space, traders turn to GBP, which have the highest saving rate, Euro, which have a long long term decline needs rebound, and CHF (Swiss Franc), a good safe financial tool.
One hours later, Chinese stock-market opens, with 9 points lower, cautious and dumb. Later, Hong Kong (-3.5%), Singapore (-4.7%), Phillippines (-5%) show the same trend. What a day, speculators sell and sell short……
In Asian banks, cambists also be busy to treat with dealers in batches, changing from USD/Euro (DEM) to Yen/CHF. If NY stocks collapse, dollar will have the same fate. Before NY markets open, Euro/USD reach to 0.9310, the highest rate for this trade day.
NY’s Landing Darkness comes Asian, while NY faces a new day, Monday, after the first time shut markets after 1914. Pre-market futures are not open in such a day. Within one hour before market opens, Fed announces that it cut rate 50bp to spur economic and to calm investors fears with a pre-market. The brave Fed do cut rate again at such stake time. Just several minutes before markets open, so that traders might still immerse into this good news, no doubt it is so effective. With traders’ pray “God bless US”, trade begins.
Despite good feelings, insurances and airlines are really suffered by terror attacks, or, the whole US economics. Nasdaq opens 97 points below, and Dow slip lower quickly. Half an hour late, with Canada, Swiss and European Central Bank cut rate 50bp, responding Fed ‘s attempt to call on US economics, investors are inspirit. Markets also rebound, to 65 points below.
During trade time, some mainly invest-banks discuss to search for ways encouraging the markets. And some American calls for buy US stocks, not selling and selling short, trying for retrieval. They call these “patriotic act”. It is understandable that they insist on buy, not sell and not care about losing money. They are so strongly eager for that passed long-term flourish, so strongly hate this tedious time full of market decline and jobless. Yet business is really a rational fair, with little feeling in. The global US market is full of smart investors. An individual could show none of effect on such huge markets. Facing waterfall indices, the best way might be sell and sell short.
Nasdaq finished in 1579 (-115.82) and Dow 8920 (-684.81).
