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Johannesburg — PANIC swept world markets yesterday as a strain of the deadly swine flu claimed more than 150 lives, raising fears that a threatened pandemic could further delay a recovery in the global economy.
By late in the day, European stocks had clawed back from losses, but emerging markets failed to recover after being hit hard by fear the virus could hit travel and tourism, their economic mainstays.
"Nobody knows what is going to happen with swine flu. People have got a bit optimistic in terms of risk appetite, so we've seen a significant reversal of that," said Standard Chartered analyst Dan Smith.
US stocks retreated as concern that the swine flu outbreak will knock travel, energy and hotel groups overshadowed gains in healthcare shares and General Motors plans to cut its liabilities.
Oil prices fell as much as 6,9%, dipping below the key $50-a-barrel level on plans by the World Health Organisation to raise its pandemic alert to an unprecedented level.
Fear of the effect of the virus mounted at the weekend, with new infections in Canada and the US discovered on Sunday.
Millions of people in Mexico stayed indoors to avoid the virus, which has killed at least 149 people in the country and infected hundreds worldwide.
Dominique Strauss-Kahn, MD of the International Monetary Fund, said he did not see a global economic recovery before next year. Speaking on CNBC, Strauss-Kahn said he hoped the worst was over, but "green shoots" in the global economy were mostly in the US.
European stocks traded lower initially, but rose after US markets rebounded briefly. The FTSEurofirst 300 index closed 0,4% up at 813,69 points after falling to 795,54. Britain's top share index also ended in positive territory.
Pharmaceuticals gained on hope of rising demand for vaccines, while commodity stocks trimmed losses as swine flu fears waned.
But the MSCI, the barometer for emerging markets , was down 2% at one stage, its steepest fall in three weeks, before paring losses to stand 1% lower. Analysts said the JSE would take its cue from the US, after closing 1,7% up on Friday. "If a turnaround in US markets holds, and we get a rebound in the east tomorrow, we can expect a positive start," said Chris Hart, an economist at Investment Solutions.
The rand was trading at R8,74/$ late yesterday, holding most of the gains notched up on Friday, when it reached R8,66/$.
Alvise Marino, an IDEAglobal emerging markets analyst, expects the local currency to trade in a range ahead of the announcement of a new Cabinet next month.
"Our expectations of a turnaround (weaker) in the rand have been pushed back by the break below 8,83, and now depend on the event of a severe reversal in investor confidence on a global scale," he said. "That is not exactly out of the question, given growing fears over the outbreak of a global flu pandemic."
Mexico ordered all schools to close yesterday as the disease spread in the US, Canada and Europe, raising fear of a pandemic.
The flu virus spreads quickly between humans, but has so far killed people only in Mexico. Governments across the world took measures to reduce its effects.
Travel and tourism took the brunt of global selling on concern that passengers could hold back from flying for fear of catching the virus, but pharmaceuticals rose as attention turned to defensive medical treatments and equipment.
US stocks marched into positive territory by late morning, only to turn slightly lower as lingering fears of a global flu outbreak slammed travel and leisure stocks. The Amex airline index dived 11,4%.
The Dow Jones industrial average was down 17,20 points yesterday afternoon, or 0,21%, at 8059,09. The Standard & Poor's 500 index was down 4,39 points, or 0,51%, at 861,84. The Nasdaq composite index was down 6,53 points, or 0,39%, at 1687,76.
"Since the opening bell, a lot of stories have come out taking the view that this swine flu outbreak is not a major threat to the global economy," said William Sullivan, chief economist at JVB Financial Group in Boca Raton, Florida. "It's a dramatic adjustment from where we were 24 hours ago, when a sense of panic was starting to take hold. That allowed stocks to erase losses and it reduced the need for safety," he said.
The share prices of big US airlines Continental, Delta Air Lines, UAL Corporation and American Airlines parent AMR Corporation all slumped 15% or more. European counterparts also fell, but not nearly as much. Lufthansa fell 9,3%, British Airways 7,8% and Air France-KLM 6,6%.
Recent economic data suggesting the recession could be abating helped US and European stocks pull back, as did a smattering of economic reports. In the US, GM shares jumped 23% as the troubled car maker announced a sweeping restructure, which investors hope will keep the company alive as it tries to secure government funding.
Gold edged lower as the dollar strengthened, but losses were capped as swine-flu fear helped underpin gold's appeal as a hedge against risk. Spot gold prices fell $4,55 to $907,55 an ounce.
The dollar rose against a basket of major currencies with the dollar index up 1,24% at 85,765. The euro fell 1,34% at $1,3074.
With Reuters, Bloomberg
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Daniel 11: 34 Now when they shall fall, they shall be helped with a little help: but many shall cleave to them with FLATTERIES.
#1 Dont Be tricked Into Allowing Yourself And Your Families To be Quietly Killed By These So-Called Vaccinations.
#2 VACCINATIONS FRAUD AND DANGERS Vaccine Safety Manual By Neil Z. Miller "for Concerned Familiesand Health Practitioners" ( 548 pages) [http://thinktwice.com/ ]
#3 Check Out This Directive : Called The Georgia GuideStones
[The Agenda Of The Antichrist aka The Georgia Guidestones] 10 POINTS LIKE THE 10 HORNS OR RELIGIONS OF THE BEAST
1) MAINTAIN HUMANITY'S POPULATION UNDER 500 MILLION IN PERPETUAL BALANCE WITH NATURE
2) GUIDE REPRODUCTION WISELY IMPROVING FITNESS AND DIVERSITY
3) UNITE HUMANITY WITH A LIVING NEW LANGUAGE
4) RULE PASSION FAITH TRADITION AND ALL THINGS WITH TEMPERED REASON
5) PROTECT PEOPLE AND NATIONS WITH FAIR LAWS AND JUST COURTS
6) LET ALL NATIONS RULE INTERNALLY RESOLVING EXTERNAL DISPUTES IN A WORLD COURT
7) AVOID PETTY LAWS AND USELESS OFFICIALS
8) BALANCE PERSONAL RIGHTS WITH SOCIAL DUTIES.
9) PRIZE TRUTH BEAUTY LOVE SEEKING HARMONY WITH THE INFINITE
10) BE NOT A CANCER ON THE EARTH LEAVE ROOM FOR NATURE LEAVE ROOM FOR NATURE
[Revelations 13:1] And I stood upon the sand of the sea, and saw a beast rise up out of the sea, having 7 heads (Kings) and 10 horns (Religious Kingdoms), and upon his horns ten crowns, and upon his heads the name of blasphemy
#4 - Here is evidence of Point 2 of the Georgia Guidestones on Reproduction . Don't be deceived : [http://www.infowars.com/?p=7259]
Daniel 11: 14 (Babylon see Rev 17 & 18 - Jer 50 & 51 ) And in those times there shall many stand up against the king of the south: also the ROBBERS of your people shall exalt themselves to establish the vision; but THEY SHALL FALL.
#5
[This inspiring poem was featuring in the movie Coach Carter ]
Our Deepest Fear Is Not That We Are Inadequate, Our Deepest Fear Is That We Are Powerful Beyond Measure. It Is Our Light , Not Our Darkness That Most Frightens Us.
We Ask Ourselves, Who Am I To Be Brilliant, Gorgeous, Talented, And Fabulous ?
Actually Who Are We Not To Be ? You Are A Child Of God.
Your Playing Small Doesnt Serve The World.
There Is Nothing Enlightened About Shrinking So That Other People Wont Feel Insecure Around You.
We Are All Meant To Shine, As Children Do.
We Were Born To Make Manifest The Glory Of God That Is Within Us.
Its Not Just In Some Of Us; Its In Everyone.
And When We Let Our Own Light Shine We Unconsciously Give Other People Permission To Do The Same.
And As We Are Liberated From Our Own Fear, Our Presence Automatically Liberates Others
- Marianne Williamson -
[NOTE BEING AFRAID AND REFUSING TO GET INVOLVED WONT STOP US FROM DYING. BUT BEING AFRAID CAN PREVENT US FROM LIVING]
(Nkosi Sikeleli Africa )
God bless Africa May her glory be lifted high Hear our petitions .
God bless us, Your children God we ask You to protect our nation Intervene and end all conflicts Protect us, protect our nation, our nation.
From the blue of our heaven, From the depths of our sea, Over our eternal mountain ranges, Where the cliffs give answer.
Sounds the call to come together, And united we shall stand, Let us live and strive for freedom, In South Africa our land.
[Enoch Mankayi Sontonga]
WAKE UP !!! STAY UP !!!
[http://www.infowars.com/infowars.asx] / [gcnlive.com] Life Is A Game. Have Fun . Luke 18:17 - Isaiah 11:6
Dear Readers , There is a climate in America and the financial world that secretly has been
"cooking the books" while they rob us. For example most financial information that is
reported only focuses on "The Budget ". A Budget is the amount of money we would
need to run our household on a specific time schedule (e.g. weekly budget, monthly
budget, yearly budget ).
When they tell us they have a "Budget Deficit ", they are actually saying they don't have
enough money for the specific period the Budget is supposed to cover. There is a more
complete financial picture that many of us are kept from seeing. This picture is called "
THE COMPREHENSIVE ANNUAL FINANCIAL REPORT ".
People like WALTER BURIEN & ALEX JONES exposed the schemes that have been
going on since 1945 in America alone !!! For more information do a search using " The
Comprehensive Annual Financial Report Exposed "..On YouTube Alex Jones &
Walter Burien share a documentary that they did in the 1990s.
[http://www.youtube.com/results?search_type=&search_query=The+Comprehensive +Annual+Financial+Report+Exposed+]
[God Bless You Readers To Want To Know And Seek To Know The Truth]
Swine Flu Smoking Gun? CDC was Combining Flu Viruses in 2004
[http://www.naturalnews.com/026159.html]
[This inspiring poem was featuring in the movie Coach Carter ]
Our Deepest Fear Is Not That We Are Inadequate, Our Deepest Fear Is That We Are Powerful Beyond Measure. It Is Our Light , Not Our Darkness That Most Frightens Us.
We Ask Ourselves, Who Am I To Be Brilliant, Gorgeous, Talented, And Fabulous ?
Actually Who Are We Not To Be ? You Are A Child Of God.
Your Playing Small Doesnt Serve The World.
There Is Nothing Enlightened About Shrinking So That Other People Wont Feel Insecure Around You.
We Are All Meant To Shine, As Children Do.
We Were Born To Make Manifest The Glory Of God That Is Within Us.
Its Not Just In Some Of Us; Its In Everyone.
And When We Let Our Own Light Shine We Unconsciously Give Other People Permission To Do The Same.
And As We Are Liberated From Our Own Fear, Our Presence Automatically Liberates Others
- Marianne Williamson -
[NOTE BEING AFRAID AND REFUSING TO GET INVOLVED WONT STOP US FROM DYING. BUT BEING AFRAID CAN PREVENT US FROM LIVING] WAKE UP ! STAY UP MY BROTHERS & SISTERS !
BE SELF-SUFFICIENT IN THE KINGDOM OF HEAVEN.
- Life Is a Game. Have Fun. [ Luke 18:17 / Isaiah 11:6 ]
" Truthseekers Mount Up ! " [ gcnlive.com ]