A week passed on the stock markets was marked by fluctuations. On the stock exchange, trading with two development companies – Orco and ECM – had to be suspended. One of the last American investment banks to provide financial assistance.
US stock indexes fell by more than 5 percent during the week, the Nikkei lost almost 6 percent and the British FTSE more than 8 percent. The index, tracking stock markets in the developing world, lost more than 10 percent. Investors reacted to the problems in the financial sector with panic sales.
It was triggered by the collapse of the fourth largest US investment bank, Lehman Brothers, after the problems of the AIG insurance company, which eventually received the necessary capital from the US Federal Reserve. There has been speculation about the financial problems of other banks, such as Britain’s largest mortgage provider HBOS, which was quickly bought by its competitor Lloyd’s TSB.
American Morgan Stanley, one of the last two largest American investment banks, is also one of financial aid.
planks in gold and oil
Negatives from the financial sector, which hit the stock markets, caused investors to compete in safe assets such as gold or, more recently, oil. The price of gold jumped by USD 87 / ounce in a single day, while the price of WTI oil traded above USD 100 / barrel.
The problems in the financial sector in the USA thus hit the US dollar, which weakened by 1.6 percent in a single day, the middle of last week, and trading in the EUR / USD bar, as in other most traded currencies, was highly volatile. The dollar and the dog, at first in the second week, could not strengthen more sharply.
The stock market cracked at more than the two-year low
Sales in the region did not escape sales either. The stock market lost as much as 9 percent during the week, Budapest by less than 10 percent and the Warsaw Stock Exchange by 6 percent.
Trading with two development companies – Orco and ECM – had to be suspended on the stock exchange, and their shares fell by more than 20 percent after opening. The great drama took place on two of the most important Russian stock exchanges, on which trading had to be done.
On Thursday, we managed to coordinate the actions of the central banks of the USA, Japan, the euro area, Canada, Switzerland and the United Kingdom. The US Federal Reserve has raised $ 180 billion to lend to local banks outside the US, which do not have enough funds in US dollars.
This aid was in the form of a decline in short-term market inflation rates, which reached historically high values, but overall the financial markets were not very enthusiastic about this decision.
In addition, the regulator of the financial market in the United Kingdom on Thursday banned speculation on a decline, so-called short-selling, which is unknown in modern history.
Graph showing the relationship between the euro and the dollar
Real protection on the horizon?
And on Thursday evening, the markets were pleasantly surprised at first by the planned full massive support of the financial system. Fully created jointly by the US Secretary of the Treasury, the Fed and a group of elements, it should resemble the protection of savings institutions in the late 1980s. At that time, the Resolution Trust Corporation was established in the USA, which was to help clean up the balance sheets of savings banks. The specific form of the full should be known during the weekend.
Thanks to this announcement, euphoria has literally taken hold of these US stores. The Dow Jones index gained 3.8 percent, the S&P 4.3 percent and the Nasdaq gained 4.8 percent.
European stock exchanges sweat in bird rno had a lot to catch up with. The British FTSE strengthened by less than 8 percent during the five-day trading period, the German DAX by about 5 percent, and the stock market cracked by almost 8 percent.
For the whole week, the German DAX lost only 0.2 percent, the FTSE 2.7 percent, the stock market hit 0.5 percent, the Budapest BUX lost 4.9 percent and the Warsaw WIG20 weakened by 1.9 percent.