Shares tumble worldwide on “Super Thursday”


A global sell-off knocked world shares to a five-month low as surging oil fanned concerns about inflation and slowing growth, just hours ahead of an expected euro zone interest rate hike and a key US jobs report.

The gloom was rampant everywhere with Tokyo stocks setting their longest losing streak in more than half a century while the dollar hit a two-month low against the euro. Government bonds largely benefited from a global risk aversion.

The European Central Bank is set to become the first G7 central bank to raise interest rates since the credit crisis erupted in August.

Tightening comes as the global economy struggles with the chilling effects of an almost one-year-old financial turmoil.

“This has been a summer of thunder storms that have been building up for some time,” said Justin Urquhart Stewart, investment director at Seven Investment Management.

“Only now are people beginning to realize quite how dark this particular storm is looking, but it's been a long time coming.”

The FTSEurofirst 300 index was down 1.5%, hitting a level not seen since July 2005. MSCI main world equity index fell 0.7% to its lowest since January 23, breaching the low set during the height of Bear Stearns crisis in March.

On Wall Street, the Dow sank into a bear market - a fall from 20% from peaks.

In the currency market, the euro benefited from the expected rate hike while the dollar fell as low as $1.5891 per euro.

“The risks for the dollar are to the downside both in terms of how hawkish the ECB is going to sound -- we don't think they can afford to sound any less hawkish than they have been,” said Phyllis Papadavid, currency strategist at Societe Generale.

“And payrolls are not going to be the cause for any comfort either.”

A weaker dollar - which policymakers increasingly worry is inflationary - pushed crude oil to fresh record highs above $144 a barrel.

Emerging sovereign spreads  widened 1 basis point while emerging stocks fell 1.4%.

The September Bund future rose 10 ticks.

Gold rose to $944.55 an ounce, its highest in almost 2-1/2 months. (Reuters)

Hungary Gasoline Prices 3% Over Regional Avg Energy Trade

Hungary Gasoline Prices 3% Over Regional Avg

Gov't Wants Sustainable Business Model for Magyar Posta Government

Gov't Wants Sustainable Business Model for Magyar Posta

120,000 Guest Workers Employed in Hungary HR

120,000 Guest Workers Employed in Hungary

Budapest Airport Wins 'Best Airport in Eastern Europe' for 1... Awards

Budapest Airport Wins 'Best Airport in Eastern Europe' for 1...


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.