Friday, June 09, 2006

Global stocks hammered again

Global share markets nosedived yesterday with India, Norway and Russia experiencing the biggest losses, on concern that higher interest rates will stifle spending and earnings growth.


Prices for gold, copper and oil also fell as investors rushed for the exits on trades that delivered sharp gains in the first five months of the year.

At the same time, crude prices extended declines to a two-week low below US$70 a barrel after Iraq's prime minister announced that the Al Qaeda leader in Iraq, Abu Musab al Zarqawi, had been killed by security forces.

Emerging markets have led global declines in equities in the past month as the prospect of higher rates led investors to favour safer assets.

Investors are always nervous and markets are extremely jittery about shifting global monetary policy. Now we are seeing this type of volatility in the markets.

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