Shares affected by US recession fears
3 March 2008 17:00
Concerns that the US is entering into a period of recession have negatively impacted upon share trading in Europe and Asia.
During early morning trading in the UK today (March 3rd), shares on the FTSE 100 index dropped by almost 100 points - by 10:00 GMT, conditions on the FTSE 100 had changed, with shares down by a total of 72 points.
"The medium term is very difficult to predict as there are a lot of unanswered questions around banks' balance sheets," said Thierry Lacraz, a strategist at Pictet, a bank based in Switzerland.
"Estimates show a lot of shareholder equity is having to be written down, which will make banks shy to lend this year, and we will also have more dilution from capital increases."
Meanwhile in Asia, Japan's Nikkei index ended trading at 12,992.18, a drop of 4.5 per cent that has been partially blamed upon the current weakness of the US dollar.
During early morning trading in the UK today (March 3rd), shares on the FTSE 100 index dropped by almost 100 points - by 10:00 GMT, conditions on the FTSE 100 had changed, with shares down by a total of 72 points.
"The medium term is very difficult to predict as there are a lot of unanswered questions around banks' balance sheets," said Thierry Lacraz, a strategist at Pictet, a bank based in Switzerland.
"Estimates show a lot of shareholder equity is having to be written down, which will make banks shy to lend this year, and we will also have more dilution from capital increases."
Meanwhile in Asia, Japan's Nikkei index ended trading at 12,992.18, a drop of 4.5 per cent that has been partially blamed upon the current weakness of the US dollar.
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