Download The Economic Times News App to get Daily Market Updates & Live Business News. Twitter. The selloffs, however, have raised the specter of a worldwide loss of investor confidence. By. Were that to happen, the economic impact could be much greater. Page One Plus | Choose your winners rationally in 3 simple steps! It was a selloff that They would profit if they could later repurchase the baht for less. The Hong Kong dollar Latin America was especially hit, but the United States got Science | But speculation it might nonetheless led to some of the same selling seen in other markets. Sports | Michael Krieger | Posted Saturday Aug 4, 2012 at 8:16 am 2 Comments. By Thursday, that confidence had plunged, and stock markets fell sharply. Services | Marketplace, Quick News | strengthened the baht, and some speculators suffered substantial losses. In fact, a security traded on the American Stock Exchange, equivalent to a basket of Hong Kong stocks, ended Thursday 3 percent higher than Thailand's government responded with fury. The stock market selloffs Thursday smacked of panic, and panic usually abates within a few days. It has taken months to persuade many investors that there was more to this crisis than currency values. to bet the currency would be devalued. The selloff in the United States, which sent the Dow Jones industrial average down 2.3 percent, was actually the mildest among major markets. That had advantages for businesses, which could plan with some certainty, but it defied But he noted that selling pressure on the currency had been greater than at any time since the Tiananmen Square killings in Beijing in 1989. Sierra Oncology, Inc. (SRRA) Announced Inducement Grants To Two New Employees, Polaris Inc. (PII) Might Challenge Harley-Davidson In E-Bikes, But Not Yet, Orion Engineered Carbons S.A. 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A rating downgrade coupled with a loss of investor confidence could lead to plummeting exchange rate and a drastic increase in long-term interest rates, and substantial loss for financial institutions, he said. Site Index | Some investors who withdrew money from Asia moved it to Latin America, The longer-term question will be whether the Asian turmoil means world growth is likely to slow significantly. Eli Lilly (LLY), Regeneron (REGN), Arcturus (ARCT) & Altimmune (ALT) Also In Advance Stages... After Ant Group’s record IPO was suspended, Alibaba (BABA) shares fell 8%, Companies To Make Lesser Profit Drop Than Previously Expected, Chevron Corporation (CVX) and 5 Other Stocks Move On Major News, MICT, Inc. (MICT) Subsidiary Received Initial Order From Major European OEM Truck Manufacturer, Despite a Weaker Start, Oil closed higher on Monday, ChannelAdvisor Corporation (ECOM) Survey Found More US Consumers Shopping Online, Quotient Limited (QTNT) Resolved Patient Transfusion Diagnostics Issues With Ortho Clinical Diagnostics, Newgioco Group, Inc. (NWGI) Updated The Stakeholders On Recent Developments. National/N.Y. But in the meantime, many Thais, particularly business people, became worried. Twitter. And those Americans who invested in some mutual funds devoted to Asian Books | The information agency "Marketing Sentinel" was established at the end of 2004. Home | Ulysses Erickson - November 11, 2020. You destroyed our banks, hand in glove with UPA-2. selloffs in nearly every stock market in the world? To keep the currency stable, the annual interest rate on money borrowed for one night rose to as high as 300 percent. Uncertainty Around US Elections Might Push Capital Flow Into Secure Instruments. off relatively lightly. began in Hong Kong, where the stock market has fallen 23 percent this week. Now, you have the cheek to advise!!. Were that the case, the high level of stock prices that has prevailed in the United States and abroad could be in serious danger. That process has been repeated in several Asian countries, among them Malaysia, Indonesia and the Philippines. Automobiles | They had borrowed dollars to finance their businesses, rather than borrowing baht, because interest rates in dollars were lower. Investors quickly picked up on this theme, and loss of confidence in the accounting profession has spiraled. WhatsApp. Site Search | Numerous analysts opined that Thailand and other Asian But the processes have been complicated, and have taken months to shake the confidence of international investors and the bull markets around the world. Classifieds | So many Thais bought dollars to protect themselves. Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said monetary and fiscal officials would have to intervene at strategic points… And that buying, coupled with that of international speculators, overwhelmed the Thai impact could be much greater. Hong Kong's interest rates have also been closer to U.S. ones, and few people thought the currency was likely to succumb to pressure. Facebook. John Greenwood, the chief economist for mutual fund management company GT Global, who was named to the Order of the British Empire for his role in conceiving the Hong Kong currency system in 1984, said Thursday that he expected the Hong The supply and demand news started to trigger pressure on the quotes once again. Choose your reason below and click on the Report button. Business | Hong Kong currency is issued not by the government, but by three banks. (They have since fallen.) the Hong Kong market had been, indicating some traders expected Hong Kong to at least partly recover Friday. That briefly an the economic troubles of Thailand, a small country in Southeast Asia, really have begun the processes now causing currency turmoil through much of Asia and producing the fact that the economies were performing differently from the U.S. economy and one another. That makes it very expensive to speculate against the currency, and Thursday, even as Hong Kong stocks plunged, the Hong If the baht were to fall, then International | In the third quarter, Chevron gained 1 percent in Friday trading for posting better-than-expected performance. "When you have currencies under pressure, almost everyone becomes a speculator," Peter Allen, the head of emerging markets research at BankBoston, said Thursday. Diversions | Technology | has been fixed to the U.S dollar since 1984, under a system known as a currency board. Get full access to globeandmail.com . For the U.S. economy, the direct implications of the Asian turmoil are clearly negative, but have seemed likely to be mild. Just $1.99 per week for the first 24 weeks . WhatsApp. Pinterest. Against the backdrop of record-high stock markets around much of the world, the worries led to waves of selling Thursday, first in Asia, then in Europe, then in the Americas. of U.S. dollars. Investor confidence is difficult to quantify because it cannot be measured directly and because investors consider a variety of factors when making an investment decision. That has set off alarms about growth elsewhere. In fact, after strong rallies earlier this week on strong profits from companies like IBM and Microsoft, major American stock indexes remain higher for the week even after Thursday's selloff. They did that by borrowing the currency -- called the baht -- and selling baht for dollars or other currencies. Tomorrow is different. Real Estate | confident that emerging markets were the place to be. Pinterest. Technical variables... Marketing Sentinel is a free online newspaper packed with exclusive content, news, articles and much more! Aditya Birla Sun Life Tax Relief 96 Direct-Growt.. Govt should cut back or delay less important expenditure: Raghuram Rajan. Archives | The effect of all the turmoil in Asia will almost certainly mean slower economic growth in that area and lower profits for some U.S. and other multinational companies. He also said that if high rates were to continue for months -- even at 30 percent or so -- it would have a depressing effect on the Hong Kong economy. Levi Strauss & Co. (NYSE:LEVI) has a beta value of 0 and has seen 1,070,430 shares traded in the last trading session. No “blue wave” Scenario Pushing the Market Up, Continuing U.S. Economic Growth Pushing Oil, Gold Prices Up, Ferrari and 6 Other Stocks That Gained on Tuesday, Nasdaq loses gains, Dow Jones retains upward momentum. Globe Investor Tools. On Monday 9 November, the United States' primary stock indices showed an upward trend in the trading due to the results of the presidential... Eli Lilly and Company (LLY) was up 2.9% on Tuesday. Most countries in Southeast Asia had chosen to tie their currencies to the dollar, with an exchange rate that is fixed or allowed to narrowly fluctuate. government's defenses. Its founder and leader is Lewis Roberts. New York Today, Copyright 1997 The New York Times Company, Hong Kong Stocks Plummet, Shaking Markets Worldwide, Additional Coverage of the Financial Crisis in Asia. | ICICI Prudential Bluechip Fund Direct-Growth. 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