Tuesday, April 28, 2009

"Pork flu" has already become a serious threat to world economy

Pig flu outbreak has already become a serious threat to the crisis-ridden global economy, leading to sharp fluctuations in exchange rates and securities, say experts. "One last thing we needed in a time-matched to the global financial and economic crisis - it is an outbreak of pig influenza," - told the Associated Press agency chief economist of ECU Group Neil McKinnon.

Opening on Monday, the last of the leading world markets, Wall Street immediately reacted to the sharp decline began in the last weekend of the dissemination of news on the new virus "CA 042009 from Mexico to New Zealand.

DJIA index in the first few minutes of trades fell by 1% (77 points) - up to 7999 point, while the S & P 500 fell by 1.1% (10 points) - up to 857 points. NASDAQ index also lost 1.1% (18 points), down to 1676 points, transmits Associated Press.

Monday morning began the first weekly decline in Asian stock indices - except for staying in the "green zone" of Japan. The Tokyo stock market index Nikkei, reflecting the dynamics of quotations of shares 225 leading companies of Japan, to close on Monday, grew slightly - by 0.2% (18.35 points), up to at 8726.34 points.

Meanwhile, the Hong Kong Hang Seng index fell 2.7%, to 14840.42 points. In South Korea Kospi index lost 1.1%, to close at 1339.83 points. In mainland China composite index of Shanghai Stock Exchange (Shanghai Composite Index) fell by 1.8%. Markets India, Singapore and Taiwan also registered a decline.

The total for the 14 countries in the Asia-Pacific (excluding Japan) index MSCI AC Asia Pacific Day on Monday fell to 1.8% from a record over the past six months heights reached in mid-April.

"The memory of SARS (in 2003 - Ed.) Is still fresh in the minds of Asian investors," - said the agency Bloomberg head of Asian securities Singapore Branch ABN Amro Private Bank Daphne Roth.

Six years ago, Asian airports almost deserted, and for the second quarter of 2003, Asian carriers have transported at 45% less passengers than the same period a year earlier.

"Ice breath swept over the market, as people will remember the SARS virus - believed the investment director of Seven Investment Management Justin Urkuhart. - The threat of a pandemic will increase the weakness of world trade: We have seen SARS noticeably cut interest index point when they were floated, but in times of weakness it will be even more unpleasant. "

Another responded to the new threat to Europe: in the course of the trading day the euro / dollar is falling to 1.3132 dollars per euro compared with 1.3252 dollars on Friday evening.

"The prospect of a global outbreak of influenza, with potentially disastrous consequences prompted traders to seek refuge in the safe haven dollar", - said CMC Markets currency analyst James Hughes.

Upavshaya 2 Jan., 2009 to 1.4058 per euro U.S. currency may rise for a month to a level of 1.2800 per euro, said the agency Bloomberg head of North America, Boston State Street Global Markets LLC, Robert Blake.

"If the disease would be more lethal, the dollar will rise, - quotes Reuters the bank BNP Paribas prepared a note to clients. - Given the recent" green shoots "(growth in the global economy), the market should be viewed any worsening of the outbreak (influenza) as an obstacle to global reconstruction. "

During the day pan-European index Dow Jones Stoxx 600 fell 1.2% - it pulled down most seriously by the news shares of airlines, hotels and restaurants. Major continental exchanges fell in the range of 1,0-1,4% and the MSCI World index by mid-day on Monday - by 0.7%.

However, in world markets and have found a group of companies whose shares went up. First, it refers to the largest producers of drugs and vaccines, as concerns GlaxoSmithKline and Roche, as well as manufacturers of protective equipment (eg, Sperian Protection), and companies involved in fishing and fish farming.

According to last year's World Bank estimates, the global pandemic of avian flu could cost the world at 3 trillion dollars and reduce world GDP by 5%.

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