Read Larry Connors' blog – Short Term Trading Strategies
The Asian markets can look to an absolutely miserable global forecast, as panic over the weekend about the U.S. financial sector sent bourses around the world into a free fall. With the carnage far from over, the financials are expected to drag the markets sharply lower again on Tuesday. Even another fall in the price of crude oil couldn't help sentiment, and it likely will send the commodity plays lower, as well.
The TSE finished sharply lower on Monday, spending the entire session in the red as the financial stocks plummeted throughout the day. Construction stocks also were down sharply, as were the cement, textile and electronics sectors.
For the day, the index dropped 258.23 points or 4.09 percent to close at 6,052.45 after trading between 6,020.70 and 6,202.14 on turnover of 72.94 billion Taiwan dollars. There were 1,832 decliners and 151 gainers, with 267 stocks remaining unchanged.
Among the decliners, Cathay Real Estate, Taiwan Cement, Far Eastern Textile, Acer, Cathay Financial, Shin Kong Financial and Chinatrust Financial all finished limit-down 7 percent, while Taiwan Semiconductor Manufacturing Co (TSMC | Quote | Chart | News | PowerRating) lost 1.90 percent and United Microelectronics (UMC | Quote | Chart | News | PowerRating) tumbled 5.78 percent.
Wall Street offers a sharply negative lead as stocks turned in a dismal performance on Monday, with the Dow ending the session with a more than 500-point decline. Investors fled the stock markets following an announcement that a major brokerage firm is going bankrupt and that another firm is being acquired.
Troubled investment bank Lehman Brothers Holdings Inc. (LEH | Quote | Chart | News | PowerRating) said earlier in the day that it intends to file for Chapter 11 bankruptcy protection in order to protect its assets and maximize value. The bank took the hard step after futile efforts to find a suitable buyer. Lehman is the latest causality in the U.S. banking sector, which has been neck-deep in losses and write-downs triggered by the crisis in the subprime mortgage industry.
Meanwhile, Bank of America (BAC | Quote | Chart | News | PowerRating) announced this morning that it is acquiring Merrill Lynch (MER | Quote | Chart | News | PowerRating) for $50 billion in an all stock transaction. The announcement came as a surprise, as Bank of America was one of the firms expected to bail out Lehman Brothers. Now some analysts fear that AIG could be next.
Crude oil plunged more than 5 percent on Monday and has moved more than $50 off its record highs of two months ago. Light sweet crude for October delivery closed at $95.71 per barrel, down $5.47 on the session. Prices fell as low as $94.13 in electronic moves. Oil fell as early indications show Hurricane Ike did not cause significant damage to the major oil refineries in the Gulf when the heavily-anticipated storm bashed into Texas on Saturday.
The major averages saw further selling pressure in the final hour of the day, closing at their worst intraday levels. The Dow and the S&P 500 set two-year closing lows, while the Nasdaq set a six-month closing low. The Dow closed down 504.48 points or 4.4 percent at 10,917.51, the Nasdaq closed down 81.36 points or 3.6 percent at 2,179.91 and the S&P 500 closed down 59.01 points or 4.7 percent at 1,192.69.
In corporate news, Taiwan investors have an estimated exposure of $80 billion Taiwan dollars in exposure to Wall Street investment bank Lehman Brothers Holdings Inc, the island's Financial Supervisory Commission said on Monday. Banks, insurers, fund management firms and brokerages have invested approximately $40 billion Taiwan dollars in Lehman, the regulator said, while private investors also have $40 billion Taiwan dollars in exposure.
For comments and feedback: contact editorial@rttnews.com Copyright(c) 2008 RealTimeTraders.com, Inc. All Rights Reserved
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
