Thursday, 6 May 2010

US Dow Jones collapse

The effect on the City of the election is said to be crucial. Well here is some news, the FTSE is going to fall at least 100 points tomorrow, a big dip.

Why? Well thanks to the Greek crisis the world markets are starting to resemble the markets of 2008 in their panic. The Dow was down over 1000 points at one this afternoon. It closed 347 lower.

The big noise was in Proctor  and Gamble, the consumer products group. It fell 37%! This is very strange, already the NY Times is reporting there may have been a malfunction in an Exchange Traded Fund on the Nasdaq which has caused panic.

On a personal note this shows the danger of stop losses. Bad things happen, markets fall, then you get stopped out. If it all turns out OK the next day, you are stuck with your loss.


James Higham said...

Eyes need to be on this. It's volatile.

Budgie said...

Things have become very jittery very quickly. This is bad news for UK stocks - and shareholders like me. Presumably the gold buffs will be saying I told you so. Will a Tory win smooth away the panic? I can't see why since the fundamentals won't change.

Nick Drew said...

budgie - see latest post on gold

CityUnslicker said...

Budgie I agree, bad news for UK shares, 5000 level looking very vulnerable.

roym said...

end of the extended bear market rally?
im a buy and hold type?! completely paralysed now that even "dead certs" like emed and xel are in the red.

CityUnslicker said... much red, have to hold for fumdamentals!