The stock movement and the sub-prime crisis...

The sub-prime crisis is not over?

Well… there was a talk in the financial parlance that the crisis is about to end but the OECD head Mr. Angel Gurra was of different opinion and he was describing it as “collective bankruptcy and damning failures throughout the chain of financial risk and regulations.” He was obviously referring to the financial measures that the government took was not sufficient to meet the ends.

He said the entire institutional chain though well oiled with all this sophistication, yesterday the pride of the authorities has been put into question by the collective bankruptcy.

US stocks fall

US stocks turned lower after opening slightly higher on Wednesday (9^th April) mainly due to cut in the earnings guidance from the package delivery giant UPS. The continuous weakness for US consumers will all likelihood hurt the corporate gains. UPS was recently trading down 3.2% at $70.90, Boeing gained 3.8% to $77.91 and was one of the strongest mover in the Dow with the US aerospace giant saying it has delayed delivery of its 787 dreamliner airplane program. However industry watchers have a different story to tell and they expected a higher growth in the year 2009 albeit the delay in the delivery of the macho machine.

Europe shares down

Further credit market loss made the investors nervous and jittery and this resulted in the bank shares going down; miners too went down as the fleeting acquisition talk was off. Banks suffered the most after rallying up during the past week on belief that the sector had turned the corners when the Swiss lender UBS announced a large write down, widely regarded as a clearing deck for a recovery.

Across Europe, Britain FTSE 100 was down 0.1%, Germany’s DAX 0.3% down, France CAC 0.4% down (April 9) and the Indian sensitive index sensex was 95.5 points down and the Nifty 14.0 points down at the close of market on April 10.