Tags: stocks | global | trillions | lost

Sell-off Wipes $2.5 Trillion Off World Stocks

Friday, 05 Aug 2011 06:35 AM

 

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink

LONDON — More than $2.5 trillion have been wiped off the value of world stocks this week on mounting concerns the global economy is heading towards another recession and Italy and Spain are being engulfed by the euro zone sovereign debt crisis.

The sum wiped off the MSCI All-Country World Index is almost equivalent to the size of the entire French economy.

The MSCI All-Country World Index is down 8.6 percent this week, on track for its biggest weekly percentage fall since November 2008.

The U.S. S&P 500 index alone has lost more than $840 billion from its market capitalisation this week, while European equities measured by the MSCI Europe have lost more than $817 billion.

"These are markets to be careful (in), not to try and be a hero," Royal Bank of Scotland Chief Executive Stephen Hestor told reporters after the bank announced its first-half results.

Credit Suisse on Friday cut its year-end target for the S&P 500 to 1,350 points from a previous forecast of 1,450. The new estimate was still 11 percent above Thursday's close of 1,200.07.

The Swiss bank also cut its forecast for U.S. companies' 2011 average earnings per share (EPS) to 12 percent growth from 14 percent and for firms in the euro zone to EPS growth of 7 percent from a previous estimate of 12 percent.

However, not all were bearish.

Ralf Groenemeyer of Silvia Quandt Research said authorities may act soon to arrest the slide.

"We expect governments and central banks to act over the weekend ... It should not be ruled out that some kind of 'quantitative easing' measures emerge," Groenemeyer said.

© 2014 Thomson/Reuters. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

State Dept.'s Nuland to Newsmax: Sanctions Reined Putin In

Sunday, 21 Dec 2014 22:10 PM

Without the tough sanctions the U.S. and its allies placed on Russia last year and the faltering Russian economy, Vladim . . .

Attkisson: CDC Not Telling Public About Possible Ebola Cases

Sunday, 21 Dec 2014 23:40 PM

The government is not telling the public about all the possible cases of Ebola it is monitoring in the United States, sa . . .

Atlanta US Attorney Yates Tapped for Deputy AG

Sunday, 21 Dec 2014 17:46 PM

President Barack Obama is preparing to nominate the top federal prosecutor in Atlanta to the No. 2 position at the Justi . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved