The world's financial markets opened on Monday in tense anticipation of further developments in the banking sector dollars. The U.S. government and Federal Reserve system was unable during the night from Sunday to Monday to develop a large western private banks formula Salvation investment bank Lehman Brothers. The Russian market down following the world.
There is currently a sharp decline in stock quotations in Asia. The index of MSCI Asia Pacific (excluding Japan) fell by 5.25 paragraph, or 1.5%, and continues to decline, the greatest shocks observed in the banking sector.
-- The Russian market fell following the world
-- The largest banks will allocate 70 billion dollars to overcome the crisis
-- Lehman Brothers Bank dropped from the number of operators of the London Metal Exchange
-- The collapse yen to the dollar was a record for 10 years
According to experts, the official declaration of bankruptcy Lehman will lead to a deepening financial crisis which threatens the stability of world economy. As the NEWSru.Israel, the fourth largest U.S. investment bank Lehman Brothers has announced the commencement of bankruptcy procedures after 158 years of operation.
"This is a nightmare - said the head of investment market research department of the Australian Colonial First State Global Management Hans Kunnen. - If previously we thought that the U.S. economy is experiencing a downturn, but now these fears were confirmed, and expects the world economy crisis."
Shares of Australia's largest investment bank Macquarie Group Ltd. cheaper at 9.8%; value of securit Babcock & Brown Ltd. collapsed by 15%; quotes Shin Kong Financial Holding Co. at 6.9%. It is expected further decline of bank indices.
After the first ten minutes of the main London Stock Exchange index fell by 2.96%, the Frankfurt - to 2.64% and Paris - to 3.35%.
"International credit crisis has affected all markets - Australia's leading expert argues Investors Mutual Ltd. Jason Te. - The real economy is too all the consequences, because the banking system will take some time to rebuild."
In turn, oil fell below 100 dollars per barrel in the absence of serious damage from Hurricane Ike ", which hit in last weekend at Houston (Texas) - the largest U.S. oil refining area. The price of oil futures contract on WTI October marks the electronic system in the New York Commodity Exchange (NYMEX) on Monday morning collapsed at 2.72 dollar level on the closing bid on September 12, at 98.46 dollars a barrel.
As noted today the business news agency Bloomberg, ever since the Great Depression 30 - of the last century, Wall Street had not experienced such a major upheaval. The oldest U.S. investment banks crumble as a house of cards, said speaking on Bloomberg television channel independent expert.
A further signal about the increase in the financial sector crisis, the U.S. was received on Monday morning announcement that Bank of America for all suddenly acquired last Sunday in a leading investment bank Merrill Lynch.
As stated in an interview with news agency, one of London analysts now begun the process of rapid revaluation of numerous speculative investment grade securit. He is accompanied by a fall in the dollar.
In turn, one of the world's most experienced financiers, the former head of the U.S. Federal Reserve Alan Greenspan said on Sunday that is now the U.S. banking system crisis happens once in a century. "
In doing so, he predicted further bankruptcy, including in the U.S. banking sector. According to Greenspan, the situation will stabilize only after how the U.S. will stop the fall in prices of residential real estate markets.
The Russian market fell following the world
The Russian stock market opened on Monday, declining prices of major blue chips "at 3-7%, MICEX index for the first few minutes of trades dropped by more than 4% - to 1091.79 points.
From 4 to 7% in the price of shares lost AO Gazprom, Lukoil, Sberbank of Russia, MMC Norilsk Nickel, "Rosneft, VTB, transmits Interfax.
13:45 RTS index to below psychologically important 1300 mark background of declining majority of the most liquid securit.
By this time, lowering the RTS index was 3.26% - up to 1298.06 item MICEX index so far lost 5.13% to 1079.4 paragraph.
According to analysts, the dominance on the Russian stock market is a consequence of the negative sentiment, above all, external factors: a sharp deterioration in conditions of world stock markets, as well as the fall in world oil prices because of a lack of serious damage from Hurricane Ike ", which hit in the past weekend at Houston (Texas).
In addition, continued pressure on the Russian stock market and continuing shortages of free ruble funds in the banking sector.
Major banks will allocate 70 billion dollars to overcome the crisis
A consortium of the world's 10 largest commercial and investment banks announced its intention to allocate 70 billion dollars to help finance compan to overcome the negative effects of liquidity crisis in the world market citing AFP.
The consortium comprising Bank of America, Barclays, Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Merrill Lynch, Morgan Stanley and UBS. In their joint statement says that banks have initiated a number of actions to help improve liquidity, reduce the unprecedented volatility and other issues affecting the global stock market and capital market. "
Banks have agreed to establish a fund volume of 70 billion dollars on the basis of equal participation of members of the consortium. The fund - up to one third of the total - will be able to take advantage of any of the ten banks. Fund size can be increased if the list of participants in the voluntary program will expand, the report said.
The bank Lehman Brothers dropped from the number of operators of the London Metal Exchange
London Metal Exchange (LME) on Monday ruled the U.S. investment bank Lehman Brothers from among its operators. This was announced in London.
Reason for this step - Lehman Brothers initiated the bankruptcy process as a result of lack of free bank funds.
Lehman Brothers was one of the largest operators of the London Metal Exchange. Through him were numerous transactions to buy and sell forward contracts for metals, listed in this area.
At the same time, it became known that a number of European stock exchanges has also stopped since this morning stock quotes Lehman Brothers.
Course dollar and the yen fell on Monday on the maximum value from October 1998 in connection with circulation of Lehman Brothers to the court a statement in bankruptcy Monday, the agency Bloomberg.
At the same time falling dollar and the euro managed to rein after Bank of America announced the acquisition of Merrill Lynch & Co. "The market now reigns rejection risks - said Lee Hardman, a specialist in monetary polic Bank of Tokyo-Mitsubishi Ltd. - It is impossible to say how these events affect the markets."
The dollar fell on Monday to 3.4% to a level of 104.54 yen. The dollar to the euro quoted at $ 1.4260 per euro. American analysts forecast a possible drop in the dollar and the euro to $ 1.46 in the week. Japanese went up by 2.7% in relation to a European - a record growth since 2001. Now rate is 149.38 yen per euro.
Traders also speculating that the Federal Reserve system may have to cut interest rates to help the market.
On the basis of quotations of futures on the size of base rate, currently 12% Market operators expect to reduce its meeting on Tuesday at 0.25 percentage point from the current 2% per annum. A week ago, such a development the situation is not nobody predicted.
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