“Black Monday” 1987 Stock Market Crash Will it Happen Again?

October 19, 2017 is the 30th year anniversary of "Black Monday" stock market crash (October 19, 1987), on this day stock markets around the world plunged. The Dow Jones Industrial Average fell 508 points marking a 22.6 percent drop, its largest ever one-day drop. The FTSE100 shed 11 per cent; and European markets followed the same downward pattern.

Following the big fall, regulators put new rules into effect, allowing for a halt in trading when there are exceptionally large price drops in certain indexes.

The fall in US markets was twice the size of those during the 1929 market crash (marked by a Black Tuesday and Black Thursday), and greater than any single-day move during the 2008 financial crisis. The recovery was almost as steep as the precipitous declines.

So will it happen again? It's possible since stock market involves risk however that kind of crash is highly unlikely.

Dow Jones industrial average is trading above 23,000 for the first time. It’s been nearly 16 months since S&P 500 index funds had a pullback of even 5 percent over the course of days or weeks, its longest such streak in two decades.

Many analysts expect the market to keep climbing, at least for the next year. The global economy is improving, corporate profits are rising and inflation remains low but not so low that it makes economists nervous.

Zynga Shares jumped by 3,292%, Amazon dropped by 87%, Apple down by 14%, eBay soared to 253%

What a day it may have been, Finance website CNNMoney, Bloomberg and Google Finance showed Zynga is up by 3,292%, Amazon plunging 87%, eBay soaring by 253%, Apple dropping 14% and Microsoft jumping 79% late Monday. Unfortunately for Zynga and eBay it was only a glitch.

According to Nasdaq, the erroneous prices came from test data that they sent out that was "improperly" used by some third party companies. It said it's working with those companies to fix the problem as quickly as possible. It was obvious that something was wrong. Apple, Amazon and Microsoft's share prices were all listed as exactly $123.47. So were those of eBay which is up by 254% and video game developer Zynga was up by staggering 3,292%.

The misleading prices appeared on the websites of CNNMoney, Bloomberg and Google Finance. But they didn't appear on Nasdaq's own website.

Nasdaq said the data that was sent out was part of "normal evening test procedures. Well, CNN and other mainstream media company might blame Russia again.




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Shares in Asia Inched to a 19-month Highs

Asian shares eke out 19-month highs on Tuesday as the potential for economic stimulus in the United States underpinned the dollar, bond yields and Wall Street stocks.

However, markets are still shaky since experts says that it his highly likely that the Federal Reserve, will have two or more U.S. interest rate hikes this year. U.S. Federal Reserve Chairwoman Janet Yellen will have an upcoming congressional testimony later in the global trading day.

Japanese shares also ran into trouble after Toshiba Corp (6502.T) delayed an anxiously-awaited earnings release, including details of a multibillion dollar charge related to cost overruns at its U.S. nuclear arm.

Japan’s Nikkei Stock Average NIK, -1.13%   was down 0.1%, Hong Kong’s Hang Seng Index HSI, -0.06%   was off 0.3% and Korea’s Kospi SEU, -0.22%   slipped 0.1%.

Singapore’s Strait Times Index STI, -1.19%   was down 0.9% after three days of gains, as concerns about bank earnings cut into sentiment. Oversea-Chinese O39, -3.28%   dropped 2.7% following weak fourth-quarter earnings. DBS D05, -2.96%   and United Overseas Bank U11, -1.52%   which report later this week, fell 2.1% and 0.7%, respectively. Australia’s S&P/ASX 200 XJO, -0.10%   was up 0.4% and New Zealand’s NZX-50 NZ50GR, +0.22%   was 0.4% higher.

In the U.S. overnight, the Dow Jones Industrial Average, the S&P 500, the Nasdaq Composite and the Russell 2000 all reached record highs which is a clear sign that Donald Trump is good for the economy!

Gold Prices Ended Lower Ahead of ECB Meeting

Gold prices ended lower on Wednesday, as investors worries about this week’s European Central Bank monetary-policy meeting.  It is possible  that the European Central Bank might surprise markets by giving more stimulus than is expected, since expectations are unduly low.

Gold for April delivery closed down 0.4% at $1,257.40 a troy ounce on the Comex division of the New York Mercantile Exchange.

Most market watchers expect the central bank to ramp up its bond-buying program and push interest rates deeper into negative territory at the conclusion of their monetary policy meeting on Thursday.

World stocks Slipped to one-month low Ahead of Fed Meeting

Global stock markets closed mostly lower Tuesday September 16, 2014 as investors played it safe in preparation for the Fed Meeting. U.S. central bank may raise interest rates sooner than previously expected

Germany's DAX fell 0.3 percent to 9,620.59 and France's CAC-40 declined 0.5 percent to 4,404.69. Britain's FTSE 100 shed 0.2 percent to 6,791.57. Wall Street appeared set for more losses. Standard & Poor's 500 futures were down 0.1 percent and Dow futures fell 0.2 percent.

The MSCI world equity index .MIWD00000PUS, which tracks shares in 45 countries, was down 0.2 percent after hitting its lowest level since mid-August earlier in the session. In Europe, the benchmark FTSEurofirst 300 .FTEU3 was down 0.4 percent.

Asian shares also slipped. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS shed 0.7 percent to its lowest since late June, while Japan's Nikkei .N225 snapped a five-session winning streak to close down 0.2 percent.

The euro held steady at $1.2937 EUR=, hemmed in a $1.2859-$1.2980 range after a sell-off sparked by the European Central Bank's interest rate cut early this month faded.

The British pound has turned volatile in recent weeks as opinion polls narrowed ahead of Thursday's independence referendum in Scotland, which could spark a sizeable panic in U.K. markets. On Monday, the pound was 0.2 percent lower at $1.6231.

Due to Job Gain Dow Average over 17,000

Because of the surging job gains, economic recovery, and central bank support it boost the Dow Jones Industrial Average over 17,000 for the 1st time Thursday. This is Dow's 1,000-point milestone this year. Job hiring in the U.S. accelerated last month.

It rose from the beginning of trading after reports of U.S. employers hired more employees than investors and economists expected. Trading was not heavy, though, and the market closed early because of 4th of July holiday. More than $200 billion was also added to U.S. equities during the week.

Micron Technology Inc. and Netflix Inc. advanced at least 6.9% as the Russell 2000 (RTY) Index recovered nearly all its losses from a 2-month selloff of Internet and small-cap shares. The Dow Jones Transportation Average (TRAN) rallied 1.5 percent to a record on the strength of global manufacturing.

The Dow were up by 216.42 points (1.3%) to 17,068.26. The Standard & Poor’s 500 Index climbed by 1.3% to a record 1,985.44. The Russell 2000 jumped 1.6%, reaching an intraday high on July 1. The MSCI All-Country World Index increased 1.4% over four days to reach an all-time high.

It took the Dow 227 days to cross the 17,000 mark after surpassing 16,000 for the first time on Nov. 18. Caterpillar Inc., the world’s largest maker of construction and mining equipment, Walt Disney Co., the biggest entertainment company, and computer-chip maker Intel Corp. led the advance, rising more than 20%.

The jobs report is the latest piece of data to show the U.S. economy continues to improve steadily. Last Wednesday, the payroll processor ADP said private businesses added 281,000 jobs in June, up from 179,000 in May. Also this week, the Institute for Supply Management said the U.S. manufacturing expanded for the 13th consecutive month.

World shares rally on U.S. fiscal hopes

LONDON (Reuters) - Share markets worldwide rebounded from last week's sharp selloff on Monday, with investors encouraged by signs of progress in talks to resolve the fiscal crunch in the United States.

U.S. lawmakers said on Sunday that a compromise was possible in talks to avert the $600 billion "fiscal cliff", which threatens to send the economy back into recession.

MSCI's world equity index <.MIWD00000PUS> jumped 0.5 percent to 318.94 points, recovering some of last week's 2.7 percent fall, its biggest five-day drop since early June.

"The thing about markets is if they can see it as light at the end of the tunnel, then they're going to discount that," said Mike Ingam, market analyst at BGC Partners.

"At the moment...there is very little clarity as to what the end game actually is although, of course, everybody expects there to be a compromise."

There was also optimism in Europe where officials looked closer to releasing delayed aid for Greece.

European officials are expected to discuss a two-year funding deal for Greece at a meeting on Tuesday, which would postpone any longer-term solution until after a September 2013 German general election.

European Central Bank policymaker Joerg Asmussen said at the weekend the ministers were likely to agree the deal for Greece and leave resolution of a longer-term debt stabilization plan, at the heart of a disagreement with the IMF, until a later date.

The euro rose 0.3 percent on Monday hitting a high of $1.2788, well above a two-month low of $1.2661 hit last week when suffered a selloff on the worries over Greece and the worsening euro zone outlook.

"As the EU prepares a bundled aid package to avert a Greek default, headlines coming out of the meeting may fuel a relief rally in the euro, but we will maintain our bearish forecast for the single currency as the region faces a deepening recession," said David Song, currency analyst at DailyFX.

European share markets also enjoyed a strong rebound from the lows of last week mainly on the growing optimism over the positive tone of the U.S. political negotiations.

The FTSE Eurofirst 300 index (.FTEU3) of top European shares was up 0.8 percent at 1,076.03 points, led by sectors that depend on economic growth, such as auto stocks (.SXAP), basic resources (.SXPP) and banks (.SX7P).

In the region's main centers London's FTSE 100 (.FTSE), was up 0.9 percent, Paris's CAC-40 (.FCHI) gained 1.25 percent and Frankfurt's DAX (.GDAXI) rose 1.3 percent. (.L) (.EU)

Gains in U.S. stock futures pointed to a firmer start on Wall Street as well, extending a rally that began on Friday.

Safe haven bond markets reflected the better risk appetite with the 10-year U.S. Treasury yield edging up as prices fell to around 1.60 percent, still only about 22 basis points above a record low set in late July.

The 10-year German government bond yield was steady at 1.34 percent but traders said there was room for yields to rise if euro zone policymakers reached an agreement at their meeting on Tuesday.

DOLLAR STRENGTH

In the currency markets the dollar strengthened against the yen on expectations a new Japanese government will push the central bank into taking aggressive monetary stimulus measures to boost growth after next month's elections.

The greenback rose to 81.59 yen, its highest level since April 25, before settling to trade around 81.25 yen, down 0.2 percent from late U.S. trade on Friday.

The Bank of Japan began a two-day policy meeting on Monday, but is not expected to take any fresh policy steps ahead of the December 16 vote.

In oil markets, Brent crude rose to almost $110 a barrel as the escalating violence between Israel and the Palestinians fuelled concern about supplies from the Middle East.

Investors fear the conflict may draw in other countries and possibly disrupt energy exports from the region, which supplies more than a third of the world's crude.

Brent crude for January delivery was up $1 to $109.95 and U.S. crude futures gained 80 cents to $87.72 a barrel. (O/R)

(Reporting by Richard Hubbard; Editing by Giles Elgood and Anna Willard)

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