The Dow Jones Industrial Average plunged 4.3 percent Thursday, its worst one-day drop in more than two years, as global markets melted down over fears of another world economic downturn.
The Dow was down 512.76 points to 11,383.68; the broader S&P 500 lost 4.8 percent to 1,200.07, while the tech-heavy NASDAQ Composite plunged 5.1 percent to 2,556.39.
More turmoil over sovereign debt problems in Europe and feeble US economic data are stoking “fear that the economy is heading for a double-dip recession,” said Peter Cardillo of Rockwell Global Capital.
“The market is pricing that in,” he said.
Markets worldwide were on edge over fiscal weakness in Italy and Spain and the eurozone’s ability to contain more crisis, as the two countries’ borrowing costs surged in recent days.
Meanwhile the US Labor Department reported that weekly claims for unemployment benefits remained at a high 400,000 last week, as business and government layoffs persisted while new job creation remained sluggish.
All of the Dow’s 30 blue-chip stocks were hit by the sell-off, but losses were most pronounced in the basic materials sectors, energy and financial companies.
“So far in 2011, central banks in the emerging markets have already bought more than double the gold they bought in all of 2010, and we’ve got almost five months to go for the rest of the year,” said Jeff Clark, senior precious-metals analyst with Casey Research.
This buying has occurred despite historically high prices. “So apparently, central banks don’t regard the gold price as too high,” Clark said.
For the year to date, net purchases by the world’s central banks are 203.5 metric tons, which already is a 168% increase from 76 tons for all of 2010, said Natalie Dempster, director, government affairs, with the World Gold Council.
Most of the data is gleamed international financial statistics released by the International Monetary Fund at the beginning of each month. Additionally, some central banks—such as Read more…
A pyramid has been discovered in Bosnia-Herzegovina that is larger, older and more perfectly oriented than Egypt’s Great Pyramid of Giza. Located near the city of Visoko, not only is it the first pyramid to be discovered in Europe, but it is also the largest valley of pyramids in the world.
Its discoverer, Dr. Semir Osmanagich, has also identified pyramids in Asia, Africa, North America and even islands such as Mauritius and Tahiti. He believes these man-made structures are so similar that they prove there was communication during ancient times over vast distances. “Our history books must be re-written,” he said.
The pyramid in Bosnia-Herzegovina has been dated at over 12,000 years old, and it also features the largest complex of Read more…
The suffocating heat wave sweeping the southern U.S. that has led to at least four deaths and left farmers’ fields bone dry shows no signs of abating as temperatures continue to reach record highs and electricity demand threatens to cripple the power grid.
The National Weather Service issued yet more excessive heat warnings Thursday for most of the southern plains, where the temperature in parts of Kansas, Oklahoma, Arkansas, Tennessee, Mississippi, Louisiana, and Texas reached as high as 43C, without the humidex.
Southern parts of California and Arizona in the west and Georgia, Florida and the Carolinas in the east also fell under heat advisories, while municipalities and counties scrambled to open cooling centres and make house calls on vulnerable residents.
Dallas marked its 34th straight day of temperatures over 38C, while on Wednesday, Fort Smith, Ark., saw the temperature reach 46C without the humidex, breaking a record of 42C set back in 1896.
As if things couldn’t get any worse, Florida residents are bracing for the Read more…
The fleet includes a missile frigate ” Luoyang“, which landed in Wanson in Democratic People’s Republic of Korea or North Korea on Thursday. It also includes a training ship. Tokyo has for long been worried about close military relationship between China and North Korea.
The move came immediately after Japan warned that China’s naval forces were likely to increase activities around its waters. The two countries have been involved in bickering over ownership of parts of the East China Sea.
Tokyo’s issued a white paper discussing military threat posed by an increasingly aggressive China. Tokyo is particularly worried because China is close to launching its first aircraft carrier, which might be put afloat in seas close to Japan.
The white paper said China’s defense budget has shot up Read more…