Global Recession Worries .

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) August 8, 2011 --

The Shanghai Composite opened just under 3% lower, its lowest level since July 2010. The heightened concerns about global growth buoyed gold prices, with the spot price for the yellow metal rising to a new record high of $1,724.90 a troy ounce, and was recently at $1,724.85, up $7.65 from New York trade. Safe-haven currencies such as the yen and Swiss franc continued to rally, raising pressure on Asian governments there to continue their foreign-exchange intervention efforts they began last week in efforts to protect export companies. They dollar fell both against the yen and the swiss franc 0.5% in Asian trading. A dollar bought ¥77.42 and 0.751 swiss francs. The euro was mostly flat compared to Monday's New York close at $1.417.

Investors continued the global selloff in Asia Tuesday with huge stock-market losses and a rapid unwinding of currency and commodity bets.Japan's Nikkei Stock Average traded 4% lower in morning trading, South Korea's Kospi Composite was 5.5% lower and Hong Kong's Hang Seng opened 6.3% lower. Australia's S&P/ASX 200 lost nearly 5% to a new two-year low.Gold prices surged to a fresh record while oil slumped to a 10-month low. The Swiss franc, the Japanese yen and the U.S. dollar, all safe-haven currencies, strengthened while commodity-linked currencies and those tied to global economic growth wilted.

"The bears have come out of their hibernation," said Ben Le Brun, market analyst at CMC Markets in Sydney "It is going to take some positive economic data…to stem the flow in the short term," he said. Global demand worries pummeled oil prices, with the September Nymex crude oil futures plunging another 3.7% to a 10-month low of $77.34 a barrel. The contract was recently down $3.71 at $77.60.China's economic data releases did little to assuage investors, as inflation in July hit 6.5%, faster than the 6.3% economists expected.

It was unclear, however, if those governments would follow through on intervention efforts. "Although both Japanese and Swiss authorities have become increasingly alarmed with their strengthening currencies, we do not think the policy interventions in place will be enough to stop flows into these currencies, as long as the underlying causes of market concern remain," Barclays Capital said in a note. The dollar meanwhile strengthened against other risky currencies, rising 1.7% against the Indonesian rupiah and 0.5% against the South Korean won the prize: www.featherhairextensionsus.com/feather-earrings-c-2.html .

Investors unwound "carry trade" bets on currencies such as the Australian and New Zealand dollars, in which they borrow in one currency to invest in another. The Australian dollar fell below parity with the U.S. dollar, a level it hasn't seen since March. Against the Japanese yen, the Australian dollar fell 1.4%, as investors paid back yen loans that they had used to bet on the Australian dollar's rise. The selloff in risky assets was broad-based, influenced by Wall Street's plunge Monday. Regional stocks were put to the sword by investors worried about a fresh global crisis on fears of slower economic growth, a mounting debt crisis in Europe and Standard & Poor's stripping the U.S. of its coveted AAA rating late on Friday.

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