New York, Jan 21: Though it was most lavish inauguration for Obama in White House, it was a sobering welcome in the financial sector. The global stocks plunged and bond prices fell on Tuesday, Jan 20. The fear of deep economic slump gripped the market.
The Nasdaq and S&P 500 both fell more thatn five per cent as equity prices crashed through key support levels holding Asian stock markets plumbed their lowest levels in six weeks on Wednesday, Jan 21 after Wall Street greeted the new U S president with its biggest inauguration day fall amid new signs of financial sector distress and global economic downturn.
Sterling fell to a 7-1/2-year low after the Royal Bank of Scotland on Monday, Jan 19 announced the biggest loss in British corporate history, setting a negative tone for the finncial sector both in Europe and the United States.
"Stocks are getting crushed because of the never-ending tragedy that has fallen upon the banking sector," said Tom Sowanick, Chief Investment Officer of hedge fund Clearbrook Financial LLC in Princeton, New Jersey.
State Street's stock fell 59 per cent while shares of Bank of America shed 29 per cent and Citigroup fell 20 per cent, hitting their lowest levels since the early 1990s. However, Barack Obama's pledge to tackle weak economy failed to cheer financial markets on his inauguration day.
OneIndia News (With inputs from Agencies)