Tuesday, February 17, 2009

Share fall on investor concerns

Shares fall on investor concerns
US shares fell sharply in Tuesday trading, as investors waited for carmakers GM and Chrysler to submit details of their restructuring plans.

At close the Dow Jones index was down 297.81 points, or 3.79%, at 7,552.60. The Nasdaq fell 4.17% or 63.70 points to 1,470.66.

The falls tracked losses in the UK, France and Germany, where banking stocks were among the biggest fallers.

Markets in London, Frankfurt and Paris all closed between 2% and 4% lower.

Earlier in the day Asian markets had also suffered falls.

Banking woes

In the US, the broader S&P 500 also fell steeply, down 37.67 points or 4.56%, to 789.17.

The falls came despite US President Barack Obama signing a $787bn (£548bn) economic stimulus package into law.

Banking stocks fell in the UK due to continuing fears about the health of the sector.

Lloyds Banking Group lost 8.7% after Chancellor Alistair Darling said the government was moving to limit staff bonuses in banks that had received state aid.

Banking stocks in France and Germany declined after a report by credit ratings agency Moody's warned about the negative impact the economic downturn in Eastern Europe will have on their profits.

Western European banks including UniCredit and Societe Generale have bought into emerging Europe's banking sector.

Shares in Societe Generale closed 10% lower.

Story from BBC NEWS:

Published: 2009/02/17 21:27:35 GMT

No comments: