Wall Street Drops on news for a downed Malaysian plane - reuters

Another Malaysian Plane crashed - 295 Dead......very shocking and sad....

Ukraine claims it was shot down....

hawklk wrote:Another Malaysian Plane crashed - 295 Dead......very shocking and sad....

Ukraine claims it was shot down....

So sad. Whats going on. Our prayers are with the victims.This is a savage act if it was shot down  

Malaysian air crash amplifies move to safer assets

Traders work on the floor of the New York Stock Exchange July 16, 2014.
(Reuters) - Stock markets around the world on Thursday were sharply lower and safe-haven investments like gold and government bonds rose after news a Malaysian airlines jet was shot down over eastern Ukraine near the Russian border.

Almost 300 people died in the crash, caused by a missile fired at the plane, according to a Ukrainian official. The incident follows an increase in tensions between Ukraine and Russia that has resulted in clashes along the border, including the targeting of military aircraft also.

The crash stoked concerns that the conflict in Ukraine might widen after U.S. sanctions against Russia were announced late Wednesday

The Russian rouble RUB= fell 1.8 percent against the U.S. dollar, its biggest one-day decline since June 2013. Major European stock indexes fell just before the close of trading. Moscow's MICEX stock market fell 2.3 percent and its dollar-traded related index, the RTS index .IRTS, dropped 3.8 percent.

"We started the day on an unstable geopolitical situation... then out of the blue you get this tragedy," said Art Hogan, chief market strategist at Wunderlich Securities in New York. "The market, we know, doesn't like uncertainty and that is what it's facing right now."

The report sparked a shift to safe-haven assets such as U.S. government bonds. The benchmark U.S. 10-year Treasury note US10YT=RR rose 15/32 in price, dropping the yield to 2.482 percent, not far from the 2014 low of 2.438 percent.

Gold prices XAU= jumped more than 1.5 percent in their biggest one-day advance in about a month. Silver prices XAG= rose 2.0 percent.

However, analysts expected the market impact of the crash to be short-lived.

“For a sustained sub-2.50 percent on the 10-year yield, we need another catalyst to support the idea the economy is not as strong as some people think," said Anthony Valeri, fixed income strategist at LPL Financial in San Diego.

Wall Street stocks hit session lows after the aircraft crash, but have since recovered some losses.

Stocks of airline companies were especially hit hard, with the NYSE Arca Airline Index .XAL dropping 1.3 percent.

The Dow Jones industrial average .DJI fell 49.7 points or 0.29 percent, to 17,088.5, the S&P 500 .SPX lost 10.11 points or 0.51 percent, to 1,971.46 and the Nasdaq Composite .IXIC dropped 32.39 points or 0.73 percent, to 4,393.58.

European shares ended their session near their lows of the day. The pan-European FTSEurofirst 300 .FTEU3 was down 1.0 percent and the MSCI International ACWI Price Index .MIWD00000PUS increased losses to 0.5 percent.

The Japanese yen JPY= rose 0.4 percent against the dollar, while the Swiss franc CHF= was little changed and the U.S. dollar .DXY was flat against a basket of currencies.

U.S. crude futures CLc1 rose 1.5 percent to $102.72 (60 pound) per barrel.

Prior to the report of the crash, Wall Street stocks edged lower on a weak read on U.S. housing starts, which fell well short of expectations in June.

Investment bank Morgan Stanley (MS.N) reported results that topped expectations, but the stock pared its early advance to trade at breakeven levels.

It looks like even innocent travelers cannot travel peacefully now. These types of political crises have become new normal now. What are the outcomes of these types of crises? There will be million of refugees in the world. The Poor get poorer. However it creates opportunities for some investors. They will buy assets for dam cheap. Unless global policy makers find permanent solution to political crises there will be more and more crises in the future too. Just like economic crises, all types of violence (war crises) made in the past history is repeating in a different manner in the new civilized world.

There is already speculation of financial crisis in Malaysia. Will this add more fuel. Malaysia should claim damage not only for lives but also to any impact on its airline industry.

Now tourists will think about their safety before they go anywhere. Safety is first. I think there will drop in tourist numbers in some countries situated in East Europe, Central Africa and Middle East in the short run. Even in Thailand situation is not that great. Therefore fun loving peaceful tourists will travel to other countries in the coming months.

http://www.smh.com.au/travel/traveller-tips/dont-go-there-the-destinations-you-need-to-avoid-20140708-3bkjq.html

Don't go there: the destinations you need to avoid

bandulawee wrote:There is already speculation of financial crisis in Malaysia. Will this add more fuel. Malaysia should claim damage not only for lives but also to any impact on its airline industry.

Have to feel for them. Kind of a curse.