On 18 September 2008, Wall Street was in a positive mood as major indices were on the green side as Dow Jones Industrial Average Index, DJI see a significant three-digit gain at the early part of the trading session. However, during the time of posed, midday, DJI is currently generally mixed as it slided into the red zone slightly with a drop by 8.14 points.
Market was concern with the financial sector again after the recent American International Group, AIG bailed out by US Central Bank, but the focus here has shifted on Morgan Stanley. While Morgan Stanley was scrambling looking for buyers, US Central Bank injected US$180 billion dollars in the hope to calm things down. Morgan Stanley is also reported to be in formal talks with Wachovia Corp, also a banking giant regionally. Will the talks resulted into something positive it is really too early to say. The two US investment banks had also reported to have approached the China’s national fund to up current stakes.
Both US banking giants have saw their stock prices falling significantly by 50 percent. It is actually going on a discount. However, investors were still concern with what would be the further development in the financial sector which had, in my opinion triggered a panic profit taking from the early gain or for some investors, cutting losses by selling into strenght.
The above are of personal opinion and not at all an inducement to trade.
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