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View Full Version : U.S. Stocks Drop on German Ban on Naked Short Sales; Euro Falls



MNeagle
18th May 2010, 11:39 AM
By Michael P. Regan and Rita Nazareth

May 18 (Bloomberg) -- U.S. stocks extended declines, led by financial and technology companies, as the euro retreated to near a four-year low against the dollar and Germany planned to ban certain types of bearish investments.

U.S. equities extended declines as the Deutsche Presse- Agentur news service said Germany will ban naked short-selling starting at midnight, citing comments made by Finance Minister Wolfgang Schaeuble to lawmakers at a closed door meeting in Berlin today.

“It brings more uncertainty to the market,” said James Paulsen, who helps oversee about $375 billion as chief investment strategist at Wells Capital Management in Minneapolis. “There’s a negative reaction to anything that regulates or disallows any kind of trading. We tried the same thing in the U.S. too. I don’t know if that really worked.”

The Standard & Poor’s 500 Index lost 0.8 percent to 1,127.47 at 1:59 p.m. in New York. The Dow Jones Industrial Average retreated 60.62, or 0.6 percent, to 10,565.21. The euro sank 1.1 percent to $1.2263, near its four-year low of $1.2235 reached yesterday.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aAQ98QpR_.zA&pos=1

Neuro
18th May 2010, 12:24 PM
Wow this could be the nail in the derivative beast coffin. Euro right now 1.2202!