NewsCase StudiesEvents

World Market Jeopardy Overshadows Presidential Inauguration

Also in the news...

May 2016 British Embassy Oslo opening hours

May 2016 British Embassy Oslo opening hours

Overseas Business Risk - Ukraine

Political and Economic Prominent Ukrainian businessman and politician, Petro Poroshenko was elected President of Ukraine in May 2014.

Notarial and documentary services guide for Slovakia

Documents, certificates, letters and notes available from the British Embassy Bratislava.

European Health Insurance Card

Who can use EHIC and what it's for

Special Offer: Save 85% on international transfers

Save 85% Versus Bank Currency Fees

World Market Jeopardy Overshadows Presidential Inauguration

Back to News

In an ironic contrast to the biggest ever presidential celebrations, America saw its bleakest ever reading for an inauguration day, with the Dow Jones plunging by 4%.

Last Wednesday saw a drop in the world stock markets, generating fears that escalating bank loses will paralyse the global economy. The news lingered over the inauguration of Barack Obama like a slick thundercloud of realisation.

Worrying news that Western banks, such as Lloyds and Royal Bank of Scotland, are in irreparable jeopardy sent stock measures falling by over 4%. Optimism seemed delusional as Barack Obama made his inauguration speech promising to rebuild a broken United States. Investors, however, appeared more rational. They speculate that, regardless of good intentions, the new President simply won’t be able to offer a stimulus package effective enough to quickly save the American economy, let alone the rest of the world.

Japan’s benchmark lost 2% in last Wednesday's remarkable drop in the market. Singapore, also, has cut its growth forecast for the year for a second time this month, stating that its economy is in danger of a 5% declination. Along with Japan and Hong Kong, Singapore is also suffering from recessional rigor mortis, with demand for exports abating.

The forecasts are especially hoary. BHP Billiton, the world’s biggest mining business based in Australia, revealed its intentions to cut 6,000 jobs (6% of employees worldwide) to align itself with current demand. Likewise, China-based insurance giant China Life speculated 2008 profits to be down 50% by that of 2007.

Japan’s Nikkei 225 stock buoyancy sank 164.15 points (2%), whereas Hong Kong’s Seng Index suffered a 381.19 point drop (2.9%). Australia lost 1%, India 2% and Singapore 1.6%. Here in the West, however, the British FTSE was down 1.8%, the German DAX 2.2% and France’s CAC-40 2.7%.

And finally, in an ironic contrast to the biggest ever presidential celebrations, America saw its bleakest ever reading for an inauguration day, with the Dow Jones plunging by 4%.

You are not logged in!

Please login or register to ask our experts a question.

Login now or register.