House rejects $700B bailout in stunning defeat - driving stocks down
In a vote that shook the government, Wall Street and markets around the world, the House on Monday defeated a $700 billion emergency rescue for the nation's financial system, leaving both parties' lawmakers and the Bush administration scrambling to pick up the pieces. Dismayed investors sent the Dow Jones industrials plunging 777 points, the most ever for a single day.
The bill went down, 228-205
US Markets crashed
The S&P 500 index tumbled the most since the 1987 crash, the Dow saw its biggest single day point fall in history and was down nearly 800 point.
Bond prices soared, dollar was mixed and credit remains frozen. Crude tanks and was trading below $ 96/bbl while gold prices zoomed.
The Dow plunged 777.68 points, or 6.98% percent, to 10,365.45.
The S&P 500 index fell 106.62 points, or nearly 9 percent, to 1,106.39. The Nasdaq slipped 199.61 points, more than 9 percent, to 1,983.73.
Oil Extends Biggest Drop in 7 Years on Rejection of Rescue Plan
Crude oil extended declines after falling the most in almost seven years yesterday as the U.S. House of Representatives rejected a $700 billion financial rescue plan, raising concern commodities demand will drop.
Yesterday, oil fell $10.52, or 9.8 percent, to $96.37 a barrel, the biggest slide in percentage terms since Nov. 15, 2001, and the largest dollar decline since Jan. 17, 1991, when U.S.-led forces expelled Iraq from Kuwait.
Indian Rupee's `Unprecedented' Decline Not Over, Treasurers Say
The rupee touched 47.115 a dollar yesterday, the lowest level since June 3, 2003, after reaching 39.185 on Nov. 7 last year, its strongest since February 1998.
India's rupee may extend yesterday's drop to a five-year low as the trade deficit swells and overseas investors dump local shares, said treasurers at Larsen & Toubro Ltd., Hero Honda Motors Ltd. and Essar Group.
The drop in the rupee is unprecedented and never have I seen such a move in my 28-year career, barring the devaluation in 1991,'' said N.S. Paramasivam, who trades an average $200 million a day as head of treasury in Mumbai at Essar, which has businesses in shipping, steel and oil. The downside risk to the rupee is mostly emanating from lack of dollar supply.
The rupee has dropped 16 percent this year, heading for its worst annual performance since 1991, when India devalued the currency as a balance-of-payments crisis forced it to pawn gold from its reserves.
Sources…
Bloomberg.com
Yahoofinance.com
Moneycontrol.com
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