Markets are Crashing

bullock

I see share prices are taking a drop fairly fast. :mad: :mad: Does anyone know if Oil is rising?

dearg_doom

Most of Europe is down over 3%

Oil(Brent - London) was down too, last time I checked

WIKI PAGE

NY expected to go down more, but dollar up so far today.

bullock

I'm guessing that will send Ryan Air shares downwards. People could be suspecting that they could get attacked again.

Pal

RYA 6.09 -0.37
OIL 60.39 -0.89 (WEST TEXAS)
DOW 10160 -128
FTSE 5115 -118

Markets have calmed down now

Oil price typically falls on terror event as demand is expected to lessen

Lump

eh..... it depends where the attack is. Like when iraq was bombed.... the price of oil rose. Pal - What an odd comment to make.


John

nobodythere

Oil hit $62 today, near an all time high

sceptre

The price of the old reliables (gold in particular) tends to rise too - I can only assume this happened as I've been sleeping late and working till now.

sceptre

Lump wrote:

Pal - What an odd comment to make.

Not really given that he's correct (depending on how you classify a terror event of course and assuming that the invasion of Iraq wouldn't make the definition). The price obviously rose after the Iraq invasion because a shortfall was expected. It dropped after the WTC attack. Hard.

grasshopa wrote:

Oil hit $62 today, near an all time high

You might want to check out what time of the day it did that (it was before news broke of the London bombs). It took a sharp drop of about 3-4 dollars a barrel between 9-10am our time before bouncing back later with that hurricane heading for the gulf of Mexico and the danger to refineries there.

It's unlikely to make much of a difference in a week's time I suspect - bombing trains, terrible as it is for people involved, doesn't make the markets care as much in the mid-term as treating a plane as a missile. The market drop and in particular the temporary (it would seem) oil price drop is probably an "oh ****" blip. Traders don't care what Al-Quada gets up to as long as you don't stop buying stuff. Mind you, I'm sure SkyNews want to be treated as seriously as CNN were in 1991 so they may well try to do a FoxNews on the whole thing. Again though, that has to significantly affect people before it'll affect the stock market. Short of another series of attacks, the only interesting thing that'll happen soon in the markets, apart from a few traders who'll make a quick buck in the next trading day (tomorrow), is what might happen to the UKP/USD conversion rate, though I suspect those few pennies will return to previous levels by mid-next week.

Pal

Lump wrote:

eh..... it depends where the attack is. Like when iraq was bombed.... the price of oil rose. Pal - What an odd comment to make.


John

What I said is correct.

Iraq was a supply issue. Supply fears cause a price premium.

Geopolitical risk such as a terror attack causes a discount on oil.
Stock markets fall and economies are expected to slow thus an expectation of lessening demand.

The price rebounded yesterday on the clarity of the fact as news came through about the situation in London and more importantly on supply fears from Hurricane Dennis. Initially it fell.

July 8 (Bloomberg) -- Oil rose in New York, heading for its
third weekly gain in four, on concern Hurricane Dennis will
disrupt petroleum shipments and output in the Gulf of Mexico,
where 38 percent of U.S. oil supply is delivered.

Direction of market on terror events;

UP
Gold
Bonds
Swiss franc

DOWN
Dollar
Oil
Stocks
Interest rates

Pal

sceptre wrote:

Not really given that he's correct (depending on how you classify a terror event of course and assuming that the invasion of Iraq wouldn't make the definition). The price obviously rose after the Iraq invasion because a shortfall was expected. It dropped after the WTC attack. Hard.


You might want to check out what time of the day it did that (it was before news broke of the London bombs). It took a sharp drop of about 3-4 dollars a barrel between 9-10am our time before bouncing back later with that hurricane heading for the gulf of Mexico and the danger to refineries there.

It's unlikely to make much of a difference in a week's time I suspect - bombing trains, terrible as it is for people involved, doesn't make the markets care as much in the mid-term as treating a plane as a missile. The market drop and in particular the temporary (it would seem) oil price drop is probably an "oh ****" blip. Traders don't care what Al-Quada gets up to as long as you don't stop buying stuff. Mind you, I'm sure SkyNews want to be treated as seriously as CNN were in 1991 so they may well try to do a FoxNews on the whole thing. Again though, that has to significantly affect people before it'll affect the stock market. Short of another series of attacks, the only interesting thing that'll happen soon in the markets, apart from a few traders who'll make a quick buck in the next trading day (tomorrow), is what might happen to the UKP/USD conversion rate, though I suspect those few pennies will return to previous levels by mid-next week.

you are spot on. (pardon the pun)

dearg_doom

sceptre wrote:

The price of the old reliables (gold in particular) tends to rise too - I can only assume this happened as I've been sleeping late and working till now.

Yep, metals(esp precious) shot up yesterday, I know a few guys in London who made more than I earn in a year yesterday with the high liquidity.