| S&P sees over $265 billion losses for financial firms
S&P 500 stock index futures dropped further in after-hours trading on news of the statement. S&P 500 futures were down 16 points and traded below fair value -- a mathematical formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. The credit ratings agency said its latest action is unlikely to add significantly to more than $90 billion of losses already reported by large financial institutions, but smaller players might have to realize write-downs. .
Wall St set to start higher
US STOCK index futures pointed to a higher market open as investors bet the Federal Reserve would cut interest rates. Shares of several big US banks, including Citigroup and Bank of America, rose in European trading. "The anticipation of a rate cut is putting in a floor under the financial stocks and moving many of them higher in Europe as rate cuts generally help the financial sector of the market," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont. Fed funds futures are pricing in a quarter point cut in the benchmark rate to 4.5 per cent. Markets were rattled on Tuesday, however, after the Wall Street Journal's Fed watcher wrote a cut was not a "sure thing." "Any surprises could quickly move things off centre," Mr Mendelsohn said.
European, Asian markets rise as investors take heart from Wall Street ...
European shares rose in early trading and U.S. stock index futures were mixed. The U.K.'s FTSE 100 Index grew 1.5 percent to 5,872.50, while Germany's DAX gained 1.1 percent to 6.893.59. The French CAC rose 1.8 percent to 4,935.50. "The FTSE rebounded this morning after yesterday's losses, led by the mining sector," said Nathan Miller, a trader at CMC Markets in London. In Asia, Japan's benchmark Nikkei 225 index rose 2.9 percent at 13,478.86. .
Fall & rise of Sensex
US stock index futures sank indicating Wall Street was likely to join a global equity markets plunge that may usher in a bear market when trading resumes on Tuesday.
January 21, 2008
Blood-bath on Dalal Street; Sensex ends 1400 points down
It was one trading day that investors will take a long time to forget. Fears of recession in the US becoming a reality saw global indices tumble. The worst to get affected in this mayhem was the Indian market.
The bears went berserk on Dalal Street creating panic to such an extent that trading in Bombay Stock Exchange's benchmark Sensex was halted briefly.
The moment trading resumed, the index recovered some lost ground. According to dealers, "government funds are trying to bring in some stability to the already crumbling market."
Sensex saw the biggest absolute fall in history by falling 2062 points intra-day.
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