30 May 2012: Stocks slide again, Facebook slump hits other internet based companies

  • Stocks slide again, Brent crude has a shocker: Hopes of stimulus from China after the positive data yesterday were dashed and Spain fears returned, which saw investors rush to safer havens
  • Stocks: FTSE All World fell 1.7% as FTSE Eurofirst lost 1.5%; In Asia mood remained bearish and FTSE Asia Pacific slid 0.7%; S&P 500 lost 1.4%, and is on course to finish 6% lower on the month; FTSE 100 lost 1.4% today and is at 5297
  • Currencies: Euro traded under $1.24 against Dollar for the first time since October 2010; Sterling against dollar is down over 1% at $1.5475
  • Debt: The rush towards the safe bonds sees German Bunds fall 9bp to 1.27% while US 10-years dropped 12bp to 1.62%, their lowest level in more than 60 years; in contrast Madrid’s 10-year shot up to 6.65%
  • Commodities: Brent Crude has lost 3.22% on the day to $103.25/barrel; Copper lost 2.3% today to sit at $3.38/pound; Gold advanced 0.6% to $1564/ounce
  • RBS inverstors might not recoup losses: RBS’ chief has said that the losses suffered by investors in the group arising from its stock slide may never be recovered. RBS shares hit a high when they were trading at £6 in early 2007, before they fell to 20p levels, which they are still at. Through a one for 10 share consolidation in the near future, the shares will rise to a value of nearly £2, a level which they haven’t seen in over 3 years
  • Facebook slump hits internet shares: Facebook’s disappointing IPO has trigerred losses in other social network share prices as well such as Zynga and Yelp. Facebook’s stock opened trading at almost $45/share but since then has lost over 37% of its value and is currently trading at $28

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