Book Reviews | Gordon Campbell | News Flashes | Scoop Features | Scoop Video | Strange & Bizarre | Search


12th Anniversary of 87 Crash Unsettles Investors

In a coincidence that could further unsettle financial investors, this week is the 12th anniversary of the stock market crash of 1987. John Howard reports.

There is a financial-market truism - America sneezes and the rest of the world catches pneumonia.

Markets around the world are preparing for a storm of volatility this week after being buffeted on Friday as concerns about interest rates and the valuation of equities scared US investors.

Global markets are opening in the shadow of a 5.92 percent fall last week in the Dow Jones Industrial average - the biggest decline for the Dow since October 1989 - and against a backdrop of continued strength of the yen against the US dollar.

Analysts are warning there would be little in US economic data to be released this week to clarify the mixed picture of US economic performance or settle whether the Federal Reserve will have to raise interest rates at its meeting next month.

Friday's fall in the Dow was prompted partly by the news that US producer prices had risen 1.1 percent in September, a higher month-on-month figure than many expected.

A benign September inflation figure is expected in figures due out tomorrow but another solid rise in imports in the US trade balance figures, due out Wednesday, would only raise market anxiety over the ability of the US to finance a widening current account deficit.

Investors are also starting to doubt the sustainability of US corporate profits, even though many US companies are beating expectations in the third quarter earnings season. The Y2K computer roll-over outcome is also creating a small amount of nervousness.

On Friday Japan's Nikkei 225 index closed more than 2.5 percent down on the week, hit by a combination of the yen's strength and Wall Street's weakness. European stocks dipped sharply after US markets opened lower.

However, the more the market's sell off on Fed fears, the less likely an actual Fed tightening will be.

The Euro Central Bank and the Bank of England are due to meet before the Federal Reserve's next monetary policy on November 16 and some analysts believe the Euro banks are more likely to raise rates than their US counterpart.


© Scoop Media

Top Scoops Headlines


Werewolf: Living With Rio’s Olympic Ruins

Mariana Cavalcanti Critics of the Olympic project can point a discernible pattern in the delivery of Olympics-related urban interventions: the belated but rushed inaugurations of faulty and/or unfinished infrastructures... More>>

Live Blog On Now: Open Source//Open Society Conference

The second annual Open Source Open Society Conference is a 2 day event taking place on 22-23 August 2016 at Michael Fowler Centre in Wellington… Scoop is hosting a live blog summarising the key points of this exciting conference. More>>



Gordon Campbell: On The Politicising Of The War On Drugs In Sport

It hasn’t been much fun at all to see how “war on drugs in sport” has become a proxy version of the Cold War, fixated on Russia. This weekend’s banning of the Russian long jumper Darya Klishina took that fixation to fresh extremes. More>>


Binoy Kampmark: Kevin Rudd’s Failed UN Secretary General Bid

Few sights are sadder in international diplomacy than seeing an aging figure desperate for honours. In a desperate effort to net them, he scurries around, cultivating, prodding, wishing to be noted. Finally, such an honour is netted, in all likelihood just to shut that overly keen individual up. More>>

Open Source / Open Society: The Scoop Foundation - An Open Model For NZ Media

Access to accurate, relevant and timely information is a crucial aspect of an open and transparent society. However, in our digital society information is in a state of flux with every aspect of its creation, delivery and consumption undergoing profound redefinition... More>>

Keeping Out The Vote: Gordon Campbell On The US Elections

I’ll focus here on just two ways that dis-enfranchisement is currently occurring in the US: (a) by the rigging of the boundary lines for voter districts and (b) by demanding elaborate photo IDs before people are allowed to cast their vote. More>>

Ramzy Baroud: Being Black Palestinian - Solidarity As A Welcome Pathology

It should come as no surprise that the loudest international solidarity that accompanied the continued spate of the killing of Black Americans comes from Palestine; that books have already been written and published by Palestinians about the plight of their Black brethren. In fact, that solidarity is mutual. More>>


Get More From Scoop

Top Scoops
Search Scoop  
Powered by Vodafone
NZ independent news