Global markets swung wildly yesterday amid the worst crisis of confidence to hit investors since the global recession in 2008.
Markets ended higher across Europe, with the Euro Stoxx 600 gaining 3.2 per cent. The UK's FTSE 100 rose as much as 3.3 per cent and dipped up to 1.3 per cent before closing up 3.1 per cent. Germany's DAX index took a similarly jumpy ride before closing up 3.3 per cent.
The Standard & Poor's 500, a broad measure of US stocks, rose 2.7 per cent in early trading yesterday. New US jobless data showed the number of people claiming unemployment benefits dropped to a four-month low, beating economists' estimates.
Volatility has been the watchword in global markets recently.
US stocks rebounded sharply on Tuesday only to fall by almost as much on Wednesday and rise early yesterday. Economists say the swings underscore growing uncertainty in the face of mixed economic indicators from Europe, the US and Asia.
"Investors are nervous and there is a lot of volatility," said Dr Giyas Gokkent, the chief economist at National Bank of Abu Dhabi. "In the case of the US markets, they have pretty much doubled since 2009, and with that in mind, is a correction healthy? Probably so."
The market sell-off that has sent the US's Dow Jones Industrial Average down by more than 15 per cent since July 21 comes as worry intensifies over the health of economies in the US, Europe and Asia.
In the US, data last week showing companies were hiring more people was balanced against slower consumer spending figures and weak manufacturing activity.
The country's credit rating was also downgraded on Friday by S&P, which spooked markets. Earlier this week, the US Federal Reserve pledged to keep interest rates near zero until at least 2013, an announcement cheered by investors.
Europe, meanwhile, is contending with a sovereign debt crisis policymakers are straining to resolve.
After bailing out Greece and extending aid to other troubled countries on the continent's periphery, European leaders are weighing the spread of the crisis to Spain and Italy.
The European Central Bank recently restarted a bond-buying programme to prop up Spanish and Italian debt prices even as fears rose that France's top "AAA" credit rating might be under threat.
Nicolas Sarkozy, the French president, and Angela Merkel, the German chancellor, are to meet next week to discuss their next steps to contain the growing crisis. The leaders said yesterday they would talk about Europe's economic governance as pressure increases for them to pump more money into a euro-zone bailout fund.
[ afitch@thenational.ae ]
Company Profile
Company name: Hoopla
Date started: March 2023
Founder: Jacqueline Perrottet
Based: Dubai
Number of staff: 10
Investment stage: Pre-seed
Investment required: $500,000
Fight card
1. Featherweight 66kg: Ben Lucas (AUS) v Ibrahim Kendil (EGY)
2. Lightweight 70kg: Mohammed Kareem Aljnan (SYR) v Alphonse Besala (CMR)
3. Welterweight 77kg:Marcos Costa (BRA) v Abdelhakim Wahid (MAR)
4. Lightweight 70kg: Omar Ramadan (EGY) v Abdimitalipov Atabek (KGZ)
5. Featherweight 66kg: Ahmed Al Darmaki (UAE) v Kagimu Kigga (UGA)
6. Catchweight 85kg: Ibrahim El Sawi (EGY) v Iuri Fraga (BRA)
7. Featherweight 66kg: Yousef Al Husani (UAE) v Mohamed Allam (EGY)
8. Catchweight 73kg: Mostafa Radi (PAL) v Ahmed Abdelraouf of Egypt (EGY)
9. Featherweight 66kg: Jaures Dea (CMR) v Andre Pinheiro (BRA)
10. Catchweight 90kg: Tarek Suleiman (SYR) v Juscelino Ferreira (BRA)
The Specs
Engine: 3.6-litre twin turbocharged V6
Transmission: 10-speed automatic
Power: 472hp
Torque: 603Nm
Price: from Dh290,000 ($78,9500)
On sale: now
Babumoshai Bandookbaaz
Director: Kushan Nandy
Starring: Nawazuddin Siddiqui, Bidita Bag, Jatin Goswami
Three stars
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich 1
Kimmich (27')
Real Madrid 2
Marcelo (43'), Asensio (56')
Community Shield info
Where, when and at what time Wembley Stadium in London on Sunday at 5pm (UAE time)
Arsenal line up (3-4-2-1) Petr Cech; Rob Holding, Per Mertesacker, Nacho Monreal; Hector Bellerin, Mohamed Elneny, Granit Xhaka, Alex Oxlade-Chamberlain; Alex Iwobi, Danny Welbeck; Alexandre Lacazette
Arsenal manager Arsene Wenger
Chelsea line up (3-4-2-1) Thibaut Courtois; Cesar Azpilicueta, David Luiz, Gary Cahill; Victor Moses, Cesc Fabregas, N'Golo Kante, Marcos Alonso; Willian, Pedro; Michy Batshuayi
Chelsea manager Antonio Conte
Referee Bobby Madley
THE DETAILS
Kaala
Dir: Pa. Ranjith
Starring: Rajinikanth, Huma Qureshi, Easwari Rao, Nana Patekar
Rating: 1.5/5
A QUIET PLACE
Starring: Lupita Nyong'o, Joseph Quinn, Djimon Hounsou
Director: Michael Sarnoski
Rating: 4/5
COMPANY PROFILE
Founder: Hani Abu Ghazaleh
Based: Abu Dhabi, with an office in Montreal
Founded: 2018
Sector: Virtual Reality
Investment raised: $1.2 million, and nearing close of $5 million new funding round
Number of employees: 12
COMPANY PROFILE
Name: Haltia.ai
Started: 2023
Co-founders: Arto Bendiken and Talal Thabet
Based: Dubai, UAE
Industry: AI
Number of employees: 41
Funding: About $1.7 million
Investors: Self, family and friends
The specs
Engine: Dual permanently excited synchronous motors
Power: 516hp or 400Kw
Torque: 858Nm
Transmission: Single speed auto
Range: 485km
Price: From Dh699,000
Company Profile
Company name: Big Farm Brothers
Started: September 2020
Founders: Vishal Mahajan and Navneet Kaur
Based: Dubai Investment Park 1
Industry: food and agriculture
Initial investment: $205,000
Current staff: eight to 10
Future plan: to expand to other GCC markets
Company profile
Company name: Leap
Started: March 2021
Founders: Ziad Toqan and Jamil Khammu
Based: Dubai
Sector: FinTech
Investment stage: Pre-seed
Funds raised: Undisclosed
Current number of staff: Seven
The biog
Name: Fareed Lafta
Age: 40
From: Baghdad, Iraq
Mission: Promote world peace
Favourite poet: Al Mutanabbi
Role models: His parents
More from Neighbourhood Watch:
The specs: Lamborghini Aventador SVJ
Price, base: Dh1,731,672
Engine: 6.5-litre V12
Gearbox: Seven-speed automatic
Power: 770hp @ 8,500rpm
Torque: 720Nm @ 6,750rpm
Fuel economy: 19.6L / 100km
CABINET OF CURIOSITIES EPISODE 1: LOT 36
Director: Guillermo del Toro
Stars: Tim Blake Nelson, Sebastian Roche, Elpidia Carrillo
Rating: 4/5