Malaysian stocks seen easing
MALAYSIAN stocks are expected to open lower today after Wall Street plunged to its lowest level in five-and-a-half years on fears of a protracted downturn in the economy.
“It’s not going to be a very nice day. There hasn’t been any new catalyst to spur buying and perhaps due to the school holidays as well, the market will be very quiet,” a dealer at a local bank-backed brokerage said.
In the
The Dow Jones Industrial Average lost 5.07 per cent, or 427.47 points, to 7,997.28 at the closing.
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The Federal Reserve’s move to slash economic growth forecasts through 2009 unleashed a wave of selling late in the day.
“With so much uncertainties around and so many companies laying off staff, the outlook is certainly not very encouraging,” said the dealer. - Reuters
US MARKET
Dow Falls Below 8,000, S&P at 5-Year Low
Wall Street hit levels not seen since 2003 on Wednesday, with the Dow Jones industrial average plunging below the 8,000 mark amid a dour economic outlook from the Federal Reserve and worries over the fate of
A cascade of selling occurred in the final minutes of the session as investors yanked money out of the market. For many, the real fear is that the recession might be even more protracted if Capitol Hill is unable to bail out the troubled auto industry.
"I don't know what the catalyst is going to be where we turn the corner and people start buying stocks wholeheartedly again," said Jon Biele, head of capital markets at Cowen & Co. "People got out of the way. The financial situation hasn't changed."
Many economists believe the economy has fallen into a recession that could be the worst downturn in more than two decades. The expectation is that easing inflation pressures will give the Federal Reserve room to cut interest rates further to combat the downturn. But investors seemed to have found little consolation in the potential for an additional rate cut.
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