Some more updates

Central banks step in to soothe markets

The Federal Reserve has stepped in to calm the markets by widening the collateral it accepts for advancing emergency loans to securities firms. A group of ten banks that includes JP Morgan Chase and Citigroup separately formed a USD 70 billion fund to ensure market liquidity.

The European Central Bank (ECB) and the Bank of England has also joined the Federal Reserve in taking action to soothe financial markets. The ECB said, “It awarded banks 30 billion euros or 43 billion dollars in a one-day money-market auction that was more than three times oversubscribed.”

China has cut interest rates for the first time in six years. The People's Bank of China has reduced the one-year lending rate to 7.20% from 7.47%.

George Bush, President of United States of America feels that the short-term financial market adjustments could be painful, reports CNBC-TV18. He said that the US government is working to reduce the impact of market turmoil on the economy. Bush added that he was confident of long-term flexibility and resilience of the economy.


Crude slips to $91.93/bbl; lowest in 7 months

Crude slipped to a seven-month low on demand concerns after Lehman's bankruptcy. It was the financial storm on Wall Street which overshadowed supply disruptions in the oil market.

In after hours access trading, crude is at USD 91.93 per barrel.


Meltdown in US finance system pummels stock market

Banking turmoil sends a shudder through Wall Street; Dow suffers biggest point drop since 2001

The upheaval in the American financial system sent shock waves through the stock market Monday, producing the worst day on Wall Street in seven years as investors digested the failure of one of its most venerable banks and wondered which domino would be next to fall.

The Dow Jones industrial average lost more than 500 points, more than 4 percent, its steepest point drop since the day the stock market reopened after the Sept. 11, 2001, attacks. About $700 billion evaporated from retirement plans, government pension funds and other investment portfolios.


Asian stock markets tumble after Wall Street falls on Lehman Brothers bankruptcy

The steep decline in U.S. stocks sent Asian stock markets tumbling sharply Tuesday as investors were rattled by concerns over an expanding global financial crisis.

Japan's benchmark Nikkei stock index fell 5.1 percent to 11,550, falling under than 12,000-point level for the first time since mid-March.

Hang Sang fell 1130 points, nearly 6%. South Korea's Kospi shed 6.2 percent, and Taiwan's benchmark was off 4.6 percent. The battering in Australia and New Zealand wasn't quite as severe, with key indices down 2.4 percent and 2.7 percent respectively.




Sources…

Bloomberg.com
Yahoofinance.com
Moneycontrol.com