The 1929 Stock Market Crash – Black Thursday – Extra History
The collapse of the stock market in the United States led to the emergency suspension to the merrants are not allowed to zero at the time at 9:50 local time the auction resumed, investors continued to sell securities – decreased index s&P 500 amounted to 7.4%, Dow Jones 7.5%, NASDAQ 6%. Analysts explain to a panic on the stock exchange with a combination of yesterday’s and today’s negative news. On Wednesday evening, Donald Trump announced a suspension for 30 days of entry into the United States of Europeans, and today the ECB did not reduce the basic accounting rate for stimulating the economy. Despite the fact that the ECB announced a new program of additional auctions for providing liquidity by credit institutions, investors expected more decisive actions.
“Contrary to the expectations of the ECB did not reduce the rate. Instead, he will buy assets in the market, concentrating on bonds of private companies and pour more liquidity to the banking sector on preferential terms, “said Berenberg CNBC TV channel Holger Schmiding.
Insufficiently energetic, according to investors, the steps of the ECB caused today’s collapse and on European sites by 8-11%.In this regard, experts believe that regulators should apply more decisive measures to contain panic in the markets. “Despite the fact that the measures taken are already quite significant, I don’t think that the ECB will be able to change the mood of investors more than the Fed made last week, – the chief European economist British Capital Economics Andrew Kenningham noted on the CNN ether.- For the economy now it is very important how the situation around coronavirus will develop and what measures will be the national authorities “.