New Castle News


November 8, 2012

Stocks plummet after Obama election

NEW YORK — Stock markets plunged Wednesday on concerns that newly re-elected President Barack Obama will struggle to agree on a budget deal with a divided Congress and as Europe’s economic outlook darkened further.

The ease with which Obama secured four more years in the White House — avoiding the uncertainty of ballot recounts, as in 2000 — had buoyed markets early in the day. But as the day wore on, investors grew concerned over the implications of a still divided Congress.

Though the Democrats maintained the presidency and their majority in the Senate, the Republicans remain in command in the House of Representatives. That could lead to a logjam in policymaking, not least over the parlous state of the country’s public finances.

The most pressing matter facing the U.S. government is the so-called — fiscal cliff — a combination of higher taxes and government spending cuts that automatically take effect unless Congress agrees on a new budget by Jan. 1. Economists warn that a failure to reach a concrete decision will push the world’s largest economy back into recession.

U.S. stocks opened lower and kept falling throughout the morning in New York. The Dow Jones industrial average was down 2.5 percent at 12,918.23 and the broader S&P 500 index off the same rate at 1,392.99.

In Europe, the FTSE 100 index of leading British shares dropped 1.6 percent to close at 5,791.63 while Germanys DAX fell 2 percent to 7,232.83. The CAC-40 in France dropped 2 percent to 3,409.59.

Sentiment has also been hit by a downbeat set of European economic forecasts from the European Commission. The executive arm of the European Union now expects the 17-country eurozone to contract by 0.4 percent this year and to grow by only 0.1 percent next year.

Figures showing that Germany, Europe’s largest economy, saw industrial production in September fell by 1.8 percent, worse than market expectations for minus 0.6 percent, also hurt sentiment.

The turnaround in stocks markets was evident in currencies, too — when risk appetite wanes, the dollar usually finds support. By late afternoon London time, the euro was 0.4 percent lower at $1.2762, a full cent lower than where it had been trading earlier.

Investors are also turning their attention toward a crucial vote in the Greek Parliament later in the day. If lawmakers don’t back a 13.5 billion ($17.3 billion) package of spending cuts and tax increases, the country faces the prospect of losing access to its bailout lifeline and potentially defaulting on its mountain of debt and leaving the euro.

That toxic combination could have massive negative repercussions in financial markets, regardless of whether a bipartisan budget solution is reached in the U.S. in the coming weeks.

Earlier in Asia, Japan’s Nikkei 225 index closed marginally lower at 8,972.89. Hong Kong’s Hang Seng added 0.7 percent to 22,099.85. South Korea’s Kospi gained 0.5 percent to 1,937.55.

Mainland Chinese shares edged lower, with Shanghai Composite Index slipping marginally to 2,105.73. The smaller Shenzhen Composite Index lost 0.2 percent to 851.64

Also on investors’ radar is Thursday’s opening of China’s Communist Party congress — the once-in-a-decade forum to name China’s top leadership. Although current Vice President Xi Jinping is almost certain to be China’s next leader, markets will be looking for hints on how the new leadership plans to tackle the nation’s economic slowdown.

In the oil markets, the price for the benchmark contract of crude was down $3.57 to $85.14 per barrel in electronic trading on the New York Mercantile Exchange.


Text Only | Photo Reprints
  • Police.jpg Man busted in morning drug raid

    A drug raid on New Castle’s East Side Wednesday morning netted one arrest. According to Lawrence County District Attorney Joshua Lamancusa, Trent McHenry was arrested in the raid at 919 Beckford St.

    November 27, 2013 1 Photo

  • 4415e771e5806122400f6a7067002cb5.jpg Senator: Deal avoids national ‘disaster’

    5:15 p.m. update — Up against one last deadline, Congress raced to pass legislation Wednesday avoiding a threatened national default and ending a 16-day partial government shutdown along the strict terms set by President Barack Obama when the twin crises began.

    October 16, 2013 1 Photo

  • Body.tiff Man’s body recovered from creek

    Emergency personnel spent 10 hours yesterday combing the Slippery Rock Creek for a man who apparently fell to his death. The man has been identified as 49-year-old Jeffrey Alborn of Hickory Township.

    July 26, 2013 1 Photo

  • Tornado.tiff Dramatic Video: chasing the tornado

    Like other Lawrence County residents, John Fromlak witnessed the power and scope of last Wednesday’s tornado. Unlike, other residents, he didn’t scramble for cover. Instead, he chased after the funnel cloud and shares his dramatic footage.

    July 15, 2013 1 Photo

  • Funnel2.tiff Gallery: 12 dramatic photos from the storm

    Wednesday was indeed a wild afternoon in Lawrence County, as a tornado and storm left flooding and destruction far and wide. Here are some powerful images as compiled by Melissa Nana Deal on the New Castle News Facebook page.

    July 12, 2013 1 Photo 1 Slideshow 1 Story

  • Nick's.tiff Photos, Video, Story: A wild afternoon

    A tornado touched down in New Beaver Borough, then high winds and heavy rain caused major flooding throughout Lawrence County. We document a wild afternoon with a photo gallery, video clips and a story.

    July 11, 2013 1 Photo 1 Slideshow

  • Tornado.tiff Tornado touches down in the county

    A tornado reportedly touched down in New Beaver borough in southern Lawrence County Wednesday afternoon. Initial reports indicated two barns were destroyed but there were apparently no injuries to people.

    July 10, 2013 1 Photo

  • Morgan.jpg Local man could set foot on Mars

    A former New Castle man could be among the first to set foot on Mars. Dr. Andrew Morgan, 37, is among eight selected by NASA for this year’s astronaut candidate class. The eight-member group — four men and four women — were selected from more than 6,300 applicants.

    June 18, 2013 1 Photo

  • police.jpg Police arrest 15 in drug roundup

    Police in Lawrence County arrested 15 people Thursday as part of an ongoing sweep of accused drug dealers. Lawrence County District Attorney Joshua Lamancusa said the detail, dubbed “Operation Spring Cleaning,” began around 10 a.m.

    June 14, 2013 1 Photo

  • lightning.jpg Storm causes power outages

    Penn Power reported that 153 Lawrence County customers had power outages Thursday morning resulting from storms that hit the area.

    June 13, 2013 1 Photo

House Ads

The Steelers opened training camp this weekend. How do you see them faring this season?

Super Bowl
Division champs
Wild card team
Missing playoffs for a third straight year
     View Results