17-03-2008
Stock markets fall following US bank rescue
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Stock markets across Europe and Asia have fallen during trading today (March 17th) after recent news on the rescue of a US-based bank.
Following the news that the investment bank Bear Stearns is to be bought, the UK's FTSE 100 index reacted this morning by falling 2.2 per cent.
Bear Stearns is to be purchased by JPMorgan Chase for an agreed sum of $236 million (£116.4 million).
Similarly, the Dax in Frankfurt and the Paris-based Cac 40 have declined by 3.2 per cent and 2.2 per cent respectively.
"There is persistent credit uncertainty. Market players have been repeatedly let down which shows the sub-prime mortgage problems are so deep-rooted," said Atsuji Ohara, a global strategist at the Tokyo-based Shinko Securities.
"Just buying an investment bank does not solve the problem".
In Asia, trading in Japan finished with the Nikkei average down by 3.7 per cent, while the Hang Seng in Hong Kong finished trading after suffering a fall of 5.2 per cent.