Global equities markets lower on credit worries

Global equities markets saw declines on Thursday, many of them substantial, after several central banks announced a program Wednesday to inject cash into the banking system. The initiative raised fears that the credit crisis is getting worse as well as that the project to increase liquidity is too little too late.

In the Asia-Pacific region, the least of the declines came in Australia, where the Sydney Ordinaries dropped 0.21 percent to 6,661.1 and the S&P/ASX200 was down 0.27 percent to 6,597.6. Elsewhere, the Kospi index fell 0.6 percent to 1,915.9 in South Korea while India’s Sensex was 1.33 percent lower to 20,104.39 and the Straits Times index was down 1.97 percent to 3,479.31 in Singapore. The Shanghai Composite fell 2.7 percent to 4,958.04. Hong Kong’s Hang Seng index was 2.72 percent lower to 27,744.45 as it dropped almost 800 points while the Taiex index fell 3.57 percent to 8,187.95, a decline of more than 300 points.

Tokyo’s markets suffered their biggest one-day losses in four months. The Nikkei 225 lost almost 400 points as it dropped 2.48 percent to 15,536.52 while the Topix index was down 2.62 percent to 1,516.1 and the Mothers market was 1.97 percent lower to 869.22. Banks were significantly lower, while exporters saw declines on a stronger yen. The oil sector, on the other hand, saw gains after crude oil prices increased significantly overnight.

Europe’s markets also declined substantially. The pan-European FTSE Eurofirst 300 was down 2.37 percent to 1,509.82. In Frankfurt, the Dax was 1.83 percent lower as it lost almost 150 points to 7,928.31. Madrid’s IBEX fell 2.27 percent with a loss of 360 points to 15,499.2. The CAC-40 dropped over 150 points, or 2.65 percent, to 5,590.91. There were no winners on the CAC-40, while there were only two gainers on the Dax, in the chemicals and pharmaceuticals sectors.

In London, the FTSE 100 was down nearly 200 points, falling 2.98 percent to 4,370.76, while the FTSE 250 was 2.9 percent lower to 10,334.7 as it lost over 300 points on the session. As on the continent, the pharmaceuticals and chemicals sectors saw gains, but banks and house builders were lower. The oil and retail sectors were mixed, but there were only three winners among retailers and four gainers in the oil sector.

Wall Street was down in mid-afternoon trade as investors questioned the ability of the plan to prop up credit markets by providing more liquidity and after wholesale prices in the US gained 3.2 percent in November on a significant rise in the price of gasoline. Even the news that retail sales were up and new unemployment claims were down in November could not send the markets into positive territory. The Dow Jones Industrial Average was down 0.45 percent to 13,413.50 while the Nasdaq Composite had dropped to 2,674.33 and the S&P 500 was 0.77 percent lower to 1,475.17. Retailers, banks and communications equipment suppliers all saw declines, but the chemicals sector saw gains.

Story link: Global equities markets lower on credit worries