Skip to: Content
Skip to: Site Navigation
Skip to: Search

December 2, 2008 8:58:56 PM CST

Learn about Newser Points »

« Back to the grid | Next story »

Europe's Markets Dive Despite Intervention

Posted Sep 16, 08 7:15 AM CDT in Business 

(Newser) – Europe's central banks pumped huge amounts of cash into markets today as stock exchanges dove and interbank lending slowed to a trickle. Just after midday in London, the FTSE 100 was down by nearly 2%, with investment banks and insurers leading declines. The Bank of England injected $35.8 billion into the markets, while the European Central Bank released nearly $100 billion in emergency funds.

Amid extreme volatility, the London Interbank Offered Rate, or Libor, posted its biggest jump ever—meaning that banks are hoarding their money and refusing to lend to one another. Many banks are short of cash because of deals with Lehman Brothers, which need to be resolved in bankruptcy proceedings. "In a healthy economic system, there is confidence," said one trader at Société Générale. "That confidence is gone."

Sources: Financial Times (UK), Bloomberg, Guardian (UK)

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Fed Joins 5 Central Banks in Shock Rate Cut

    Oct 8, 08 7:04 AM CDT
    Fed Joins 5 Central Banks in Shock Rate Cut The Federal Reserve and five other central banks cut interest rates by 50 basis points in an emergency attempt to stem the economic effects of the credit crisis, reports Bloomberg. The move brings the American benchmark rate to just 1.5%, while the European Central Bank and the monetary authorities of the UK, Canada, Switzerland, and Sweden all joined in the action. China also cut rates by more than a quarter-point.
    More »

  • Central Banks Scramble to Feed Cash Into Markets

    Sep 26, 08 7:00 AM CDT
    Central Banks Scramble to Feed Cash Into Markets The world's central banks are frantically spraying money into the economy to prevent it from seizing up as the US bailout package stalls and confidence plummets, Reuters reports. The holdup in Washington has made edgy commercial banks even more inclined to hoard cash and not lend to each other—leaving central banks with little choice but to step in.
    More »

  • European Banks Loosen Purse Strings

    Sep 15, 08 10:02 AM CDT
    European Banks Loosen Purse Strings The weekend’s storm on Wall Street has prompted Europe’s central bankers to make billions of dollars available on the cheap to global money markets as a levee against a rising flood of fresh turmoil, the New York Times reports. The European Central Bank has pledged $43 billion and the Bank of England $9 billion to help stabilize markets. More »

A businessman walks past the NYSE before the start of trading Tuesday, Sept. 16, 2008 in New York. World markets swooned Tuesday as investors worry that asset prices had yet to hit rock bottom.   (AP Photo/Mark Lennihan)
A commuter walks past an electronic display showing the British FTSE 100 share index, in London, Monday, Sept. 15, 2008, with early trading numbers showing a 2.38 percent drop in the markets value.   (AP Photo/Alastair Grant)
A broker reacts at the stock exchange in Frankfurt, central Germany, on Tuesday Sept. 16, 2008. European stock markets fell again on Tuesday caused by the U.S. financial crisis.   (AP Photo/Daniel Roland)
A Pakistani stock broker takes a nap at Karachi Stock Exchange in Karachi, Pakistan, Tuesday, Sept. 16, 2008. The Karachi stock market continued to witness a dull trading session.   (AP Photo/Fareed Khan)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 3)

Tags

Lehman Brothers • European Central Bank • European markets • Bank of England • bear market • Libor • FTSE 100


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Face it: there's too much news. At Newser a team of editors and writers culls the most important stories from hundreds of U.S. and international sources and reduces them to a headline, picture, and two paragraphs. It's the Newser guarantee: we can take any report or column or video and pack what you need to know into 120 words or less. Newser's short-form aggregation, visual format, and unique information tools help you get more of the kind of news you want, in a quicker and more entertaining way. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »