Investors are wary of the acquisition of Bear Stearns by JPMorgan, reports Toby Anderson for the Associated Press. One bank was saved, but what does it mean for the banks that are still standing? The challenge now for investors is knowing if the bottom has been reached, or if the markets will continue to fall even further.
While the Federal Reserve scrambles to prevent an all-out meltdown, global markets still reflected a nervous sentiment:
- iShares MSCI United Kingdom Index (EWU): down 3.7% intraday, down 11.2% year-to-date
- iShares MSCI France Index (EWQ): down 2% intraday, down 12% year-to-date
- iShares MSCI Australia (EWA): down 2.8% intraday, down 12.8% year-to-date
Asian stocks fell today, as well. Japan’s benchmark index lost 3.7% to hit its lowest point in more than two and a half years. Interestingly, the iShares MSCI Japan Index (EWJ) was up 2.5% intraday. The fund is down 12.8% year-to-date. Hong Kong’s Hang Seng index fell 5.2%, and the iShares MSCI Hong Kong (EWH) was down 1.9% intraday. Year-to-date it’s down 22.3%.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.