American Accommodation Presses Down World Markets
// European and Asian stock exchanges are hardly recovering
The problems of the U.S. mortgage market caused the fall at all international stock markets, for a second time this year. The developing crisis left no hope that its consequences would remain local, and would not affect foreign markets. In the first hours of trading on Wednesday, the fall of major European and Asian indexes made up between 1 and 2 percent. Russian experts do not expect the third wave so far, in hopes that the U.S. authorities will be able to stabilize the situation on their own.
The U.S. indexes had on Tuesday their largest fall in the last five months. S&P500 index fell by 2 percent, down to 1511.05 points, and Dow Jones Industrial Average index fell by 1.6%, down to 13716.95 points. The bear trend is due to the negative news from the risky mortgage market. For instance, shares of Countrywide mortgage company fell by 11.4 percent.
The decrease of U.S. shares led to the fall on all major international stock exchanges. Asian and European indexes fell by 1-2 percent after the bidding on Wednesday. Thus, French CAC 40 fell by 0.56 percent, and German DAX 30 -- by 0.76 percent.
Experts believe the U.S. events have almost no impact on Russia’s stock market. However, everyone expects the U.S. authorities to take active measures to correct the situation. “If the U.S. keeps having problems with the mortgage, the authorities will be increasing the liquidity by means of keeping low interest rates,” said Uralsib analyst Anton Tabakh.
www.kommersant.com
All the Article in Russian as of July 26, 2007
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