We cover the unfolding world financial crisis throughout the day. Keep updating this page for latest news.
KEY POINTS:
16.51-SYDNEY: The Reserve Bank of Australia (RBA) has cut the cash rate by massive 100 basis points, to six per cent, after its board meeting today.
The move by the central bank was bigger than the 50 basis point fall economists had predicted.
"At its meeting today, the board decided
to lower the cash rate by 100 basis points to 6.0 per cent, effective 8 October 2008," RBA governor Glenn Stevens said in a statement.
It is the first 100 basis point cut to the cash rate since May 6, 1992, when the RBA lowered the cash rate to 6.5 per cent.
16.29- Things appear to have stabilised on the NZX this afternoon, with some shares even gaining in value. The NZX-50 is down 2 per cent, with a 62 point fall to 2985. Top stock Telecom is down 1 cent to $2.78 and Fletcher Building shares are changing hands down 16c at $6.34. Contact Energy shares are up, rising 5 cents to $7.45.
Nearly $5 billion of value has now been wiped off the New Zealand exchange in the past four weeks.
The total value of all shares on the benchmark NZX-50 today stands at $34.6 billion. On September 10 it was $39.3 billion.
In the past three days of trading, the NZX-50 has fallen more than 8 per cent.
15.24-HONG KONG: Financial markets in Hong Kong are closed today for a public holiday. Trading will resume on Wednesday.
14.42- The NZX Top 50 Index continues ailing, slumping further to
2966, a loss on the day so far of 81.5 points, or 2.75 per cent. Market leaders Telecom, Fletcher Building and Contact all show small losses of between 1 and 2 per cent on the day's trading. Auckland International Airport is down over 4 per cent at $1.82.
14.30-TOKYO: Japan's Nikkei stock average fell more than 5 per cent on opening today, to a five-year low below 10,000, before some bargain hunters emerged to erase some of the losses.
A stronger yen has hurt exporters such as Canon Inc and automakers, whose earnings have been badly undercut by the worsening economy overseas, news agency Reuters reported.
A slight rebound shortly after opening saw the benchmark Nikkei steady at 10,106.16, down 3.5 per cent. The broader Topix was down 3.8 per cent at 961.33.
13.05- In New Zealand the benchmark NZX 50 was down 73 points, or 2.48 percent to 2974 in early afternoon, a three year low. The index last fell below the 3000 mark in April 2005. Telecom was down 7c to $2.72, Contact Energy was down 16c to $7.24 and Fletcher Building was down 15c to $6.35 at midday.
12.32-SYDNEY: The Australian share market has opened more than three per cent down.
The benchmark S&P/ASX200 is down 138.4 points, or 3.05 percent, to 4,402, while the broader All Ordinaries has fallen 141.9 points points, or 3.12 percent, to 4,402.8.
12.24-LUXEMBOURG: European Central Bank President Jean-Claude Trichet has called for calm in the continent's jittery markets, saying they are overestimating risks and the euro-zone central bank stood ready to provide all the liquidity needed for as long as necessary.
He spoke as European Union finance ministers discuss rules for guaranteeing all private savings - after Ireland, Germany, Greece, Austria and Denmark alarmed other European neighbours by declaring separately that money held by ailing banks would be safe.
11.30- SYDNEY: The Sydney Morning Herald is reporting that Australian markets are bracing for a heavy fall this morning, after the drop on Wall Street overnight.
The Australian dollar plummeted to 69.85 US cents in offshore trade, its lowest since September 2004, according to Bloomberg.
A sharply weaker Aussie dollar is unlikely to deter the Reserve Bank from cutting interest rates by half a point today to 6.5 per cent, to stimulate the economy amid a slump in domestic demand. The RBA's decision will be announced at 2.30pm.
11.20- NEW YORK: "Today is watching the sky fall," T.J. Marta, a US-based fixed income strategist has told the New York Times.
Proponents of the US Government's bailout package argue that its longer-term benefits will take time to carry out.
"That's a longer-term solution; it will help once things have calmed down," said Marta.
"But right now, things aren't calm. Right now, the fire's kind of burning out of control."
10.36- NEW YORK: Bank of America has reported its third-quarter results earlier than planned, revealing a 68 per cent profit drop and plans to boost capital by selling stock and halving its dividend.
Like most other major financial institutions, Bank of America has been hit by significant losses in mortgages, credit cards and other souring debt.
Profit fell to $US1.18 billion, or 15 cents per share, for the July-to-September period from $US3.7 billion, or 82 cents per share, in the same period last year.
10.25- The NZX-50 has fallen more than 2.6 per cent this morning.
Telecom shares are down 9c to $2.70, Fletcher Building 23c to $6.27 and Contact Energy 16c to $7.24.
Most of the top-50 have fallen. Among the worst hit are Sky City down 15c to $3.18, Steel & Tube 11c to $3.60, Fisher & Paykel Appliances 8c to $1.56, Freightways 5c to $3.12, Infratil 7c to $1.93, NZ Oil and Gas 8c to $1.20, Pike River Coal 7c to $1.55 and Rakon 13c to $2.20.
10.17- The big companies on the NZX have opened down. Telecom shares are down 9 cents at $2.70, Contact Energy shares are down 20c at $7.20 and shares in Fletcher Building have fallen 25c to $6.25.
10.05-The New Zealand sharemarket has dropped 2.65 per cent when it opened at 10am. More to come...
09.40- NEW YORK: Oil prices have plunged below US$90 a barrel this morning, coming within reach of year-ago levels as the widening financial maelstrom spreads overseas and crimps global demand for energy.
Light, sweet crude for November delivery fell US$6.07, or 6.4 per cent, to settle at US$87.81 a barrel on the New York Mercantile Exchange. It was crude's fourth straight negative session and its lowest settlement since February 6.
Oil prices have now tumbled 40 per cent since peaking at US$147.27 a barrel on July 11.
09.35-LUXEMBOURG: European Central Bank President Jean-Claude Trichet says jittery markets are overestimating risks.
He has called for markets to be calm, saying the euro zone central bank stood ready to provide money markets with all the liquidity they needed for as long as they need.
Trichet said yesterday that governments such as Germany and Ireland that have guaranteed all private savings were shouldering their responsibilities.
09.30- SYDNEY: Three of Australia's largest banks have obtained long-term loans from the Future Fund as cash dried up from other sources, The Australian newspaper reports.
The ANZ, Westpac and National Australia Bank (NAB) tapped funding for up to 10 years, with the deals concluding shortly after the collapse of investment giant Bear Stearns in the US on March 16.
09.20- NEW YORK: It has been another extraordinary and traumatic day on Wall Street, with the Dow Jones industrials plunging as much as 800 points before closing with a loss of about 350.
The Dow set a new record for a one-day point drop and also fell below 10,000 for the first time since 2004. But it recovered somewhat in erratic trading as bargain hunting set in and closed down 3.5 per cent. The blue chips closed with a loss of about 350 at the 9,971 level. The tech-heavy Nasdaq finished the day's trading down 4.3 per cent.
09.15- The NZ dollar slumped to a two-year low against the US dollar overnight following 'carnage' in international markets.
The strong US dollar saw the NZ dollar fall to US62.03c at 8am today from US65.15c at 5pm last night.
The NZ dollar was last down at that level in August 2006.
Bank of New Zealand currency strategist Danica Hampton said the NZ dollar's 'dramatic plunge' was the result of 'carnage' in currency markets which started in Asia yesterday afternoon.
- AP/NZPA/HERALD ONLINE
