Markets are dropping like a rock. Went down more than 4% in less than a minute.Seemed like that the whole financial system was unravelling. The European problem that has been festering over the last 2 weeks suddenly seemed to hit the market in full force and weight.Euro is dropping like its a sub-Saharan currency while gold has hit more than $1200\/ounce. Was’nt around in 1987 to see the biggest one day crash , but I guess the PPT (Plunge Protection Team) which is rumored should be around to prevent that.As I write this market has recoverd by 3%.US Treasuries which are considered as the safe have has climbed by almost 10% while yen is up more than 5% against the dollar reflecting the “safe haven” move towards these assets.<\/p>\n
U.S. stocks caved on Thursday, with the Dow industrials down more than 500 points and poised for their second triple-digit drop in three days, as investors pondered the implications of Europe’s financial troubles on Wall Street.<\/p>\n
“You can go back to Goldman Sachs Friday when the market sold off. Since then the market has been prone to headline risk and looking for a reason to sell off,” said Jay Suskind, senior vice president at Duncan-Williams.<\/p>\n
“Is the market now seeing Greece and Europe as the canary in the coal mine for us? We all know we have budget and deficit issues,” Suskind said.<\/p>\n
After brief bursts into positive territory, the major U.S. stock indexes gave way, as the euro fell to a 14-month low against the dollar and crude-oil futures traveled to two-month lows under $80 a barrel.<\/p>\n
Nearly 10 stocks were falling for every one on the rise on the New York Stock Exchange, where 647 million shares had traded as of 2:35 p.m. Eastern. Composite volume neared 6.5 billion.<\/p>\n
“While the situation in Europe will potentially have only a small impact on the U.S. recovery, it remains an important export and import market for many countries and the euro is second only to the dollar as a universal transaction currency,” Fred Dickson, chief market strategist at Davidson Cos., wrote in a note.<\/p>\n
Exposed<\/h3>\n
“U.S. companies with substantial European exposure may get hurt, as products with a dollar cost basis suddenly have become more expensive in Europe,” Dickson added.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"
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