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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (41318)	9/11/2001 9:47:44 PM
From: Dealer	Read Replies (2) \| Respond to of 65232

Europe Markets Bourses dive after Trade Centre blast World markets plummet after "apparent terrorist attack" By Heather Peacocke, FTMarketWatch.com Last Update: 4:03 PM ET Sep 11, 2001 LONDON (FTMW) - Global markets slumped on Tuesday after two hijacked airliners crashed into New York's World Trade Center and a third jet hit Washington's Pentagon in what President Bush called an "apparent terrorist attack". Stock markets plunged on the turmoil, oil futures leapt and sterling hit six-month highs in extremely volatile trade as the disaster escalated. See Terrorism strikes hit U.S. Timeline of attacks on U.S. World indices slump Frankfurt's DAX 30 (1876534) see-sawed wildly, reversing a 2 percent morning gain to dive as much as 11 percent. It finished down 8.4 percent at 4,267.9, its lowest level in almost three years. In Paris, the CAC 40 (1804546) closed off 7.4 percent to 4,059.7 while the Neuer Markt (1809455) dropped 7.8 percent to 837.5 in late trade. London's FTSE 100 (1805550) closed down 5.7 percent at 4,746 while the FTSE TechMARK (1859502) fell 4.6 percent to 1,278.9. See London market report Meanwhile, Stockholm's benchmark OEX index closed 7.5 percent lower at 678, the Amsterdam AEX index (1810101) shed 7 percent to 449 and Milan's MIB 30 was off 7.8 percent at 2,910. Americas and currencies Latin American bourses also slumped after the attack. Trading was later halted in Argentina, Chile and Brazil. Currency markets also saw sharp swings in the wake of the disaster. Sterling hit six-month highs against the dollar at £1.4692 and traded recently at £1.463. CORRECTED: The euro spiked up against the dollar reaching a high around $0.909 and recently traded at $0.9030, up from earlier levels of $0.8975 before the blast. October Brent Crude soared more than $3 to $30.98 but retreated to $29.44 by the market close. Oil majors mirrored the rise. BP (BP) and Shell (SHEL) were up 2.2 percent and 4.9 percent respectively. Spain's Repsol rose 4.6 percent to €18.44 in Madrid. Gold surged, trading at $290, up $19 an ounce in London. Investors prepare for further disruption Investors are bracing themselves for further turmoil on Wednesday, amid the prospect of U.S. retaliation and uncertainty over whether major global indices will even be open for trade. The NYSE is closed indefinitely while at 18:15 CET Deutsche Boerse could not say for certain whether it would be open. However, the LSE confirmed London will be open as normal on Wednesday. Euronext said the Paris CAC 40 is due to open as normal, although it may change its mind before Wednesday morning. Euronext Amsterdam said it is not sure and will make a decision on Wednesday morning. The Bank of England denied reports that it had already agreed to provide emergency liquidity, saying the issue had not been raised. "This is clearly proving disruptive to the financial community in the U.S., but London markets will continue to operate as normally as possible in the circumstances. The position in the U.S. is not yet clear," a spokeswoman said. However, Reuters reported Federal Reserve was on standby to provide liquidity if needed. Insurers, airlines hit European insurers across the board were dumped on the news, with Swiss Re leading the pan-European FTSE Eurotop 100, off 17 percent. UK-based bank Standard Chartered (STAN) took second position, shedding 15.3 percent. Companies with large U.S. operations such as Dutch insurance group ING Groep (30356) (ING) and Zurich Financial (ZURN) registered double digit losses. UK insurers CGNU (CGNU) and Royal Sun & Alliance (RSA) were off 9.9 percent and 15.2 percent respectively. Germany's Allianz (840400) (AZ) dropped 13.7 percent and Munich Re (843000) plunged 15.5 percent. Among the airlines, British Airways (BAY) fell 21.2 percent and Lufthansa (823212) followed suit, off 14.3 percent and Air France (003112) was fell 16.3 percent. Earlier... Earlier, markets received a boost to a morning relief rally after an upbeat trading statement from Nokia (000053994) (NOK) The Finnish mobile equipment maker jumped as much as 15 percent after it said it would meet third quarter profit targets set on July 19. However, amid the turmoil on the markets, shares reversed double-digit gains to finish down 7.9 percent. Nokia says Q3 profits on track Fellow telecoms giant Ericsson (ERICY) (000010865), French telecoms equipment maker Alcatel (013000) (ALA) and Philips rose following Nokia's statement but failed to hold gains after the terrorist attack on the WTC. Franco-Italian chipmaker STMicroelectronics (012970) rose as much as 4 percent after its chief executive forecast a recovery in the semiconductor industry in the fourth quarter but shares closed off 7 percent. STMicro sees Q4 recovery UK telecoms equipment maker Marconi (MONI) (MONI) led the pan-European FTSE Eurotop gainers in the early part of the day but gave up gains to close down 4.5 percent. Banks & Automobiles Shares in Italian bank Unicredito Italiano gained as much as 7 percent after it decided not to bid for Germany's fourth-biggest bank following weeks of preliminary talks. Shares fell 13.9 percent. Commerzbank shed 13.9 percent. See Unicredito says ciao to Commerzbank In other banking news, Deutsche Bank's (804010) chief executive Rolf Breuer told business daily Handelsblatt he was not interested in buying Commerzbank. Deutsche shares fell 12 percent. See Deutsche Bank rules out Commerzbank takeover German sports car maker Porsche (693773) said fiscal 2001 sales rose to 8.5 billion Deutsch Marks from 7.1 billion, also in line with forecasts. Porsche forecast "high level" sales in 2002, saying its improved model mix would positively impact profit. Shares gave back morning gains to trade off 13.4 percent. See Porsche continues to set the pace BMW (519000), Germany's third-largest carmaker, said it expects full-year sales and profit to "significantly" exceed 2001's results after it launched the Mini city car. Nevertheless, shares fell 9.8 percent. Retail UK fashion retailer Next (NXT) retreated from earlier highs to trade off 4 percent after it posted a 15 percent rise in pre-tax profit to £93 million. The result was in line with estimates. See Next reports firm first half Luxury goods maker LVMH (012101) was upgraded to "strong buy" from "buy" by Lehman Brothers. Shares in media group SMG (SMG) fell 8.2 percent after it said first-half pre-tax profits were down by a third compared with the same period in 2000. The company said it was meeting market expectations despite tough trading conditions. See ad slump hits SMG profits --------------------------------------------------------------------------------