Stock market down august 25 2011

Stock market down august 25 2011, why Stock market down august 25 2011, Stocks retreated as panic selling pushed Germany’s DAX Index down 4 percent in 15 minutes amid concern regulators may impose restrictions on short selling. The dollar and Treasuries advanced, while oil fell and Bank of America Corp. shares surged.



The Standard & Poor’s 500 Index dropped 1 percent at 11:53 a.m. in New York. The Stoxx Europe 600 Index lost 1.2 percent after rising as much as 1.1 percent. The DAX retreated 1.7 percent as of the close of trading in Frankfurt. The Dollar Index jumped 0.3 percent. Treasuries rose, driving yields on 10- year notes down six seven points to 2.23 percent. Crude futures slumped 0.8 percent.



Investors speculated that Germany would impose a short- selling ban, said Ryan Larson, head of U.S. equity trading at RBC Global Asset Management Inc. in Chicago. Germany’s Finance Ministry said the speculation was incorrect. Traders may also be using Germany equities as a hedge before France, Italy and Spain decide whether to expand a ban on the practice, said Miller Tabak & Co.’s Peter Boockvar.



“All eyes are of course on the German stock market selloff,” New York-based Boockvar wrote in an e-mail. “It seemed to come out of nowhere.”



When U.S. exchanges opened, the S&P 500 advanced as much as 1.1 percent after Warren Buffett’s Berkshire Hathaway Inc. agreed to invest $5 billion in Bank of America, which had plunged 53 percent in 2011. The stock rallied 12 percent. At the same time, Nasdaq-100 Index futures erased losses that had been driven by Steve Jobs resigning as Apple Inc.’s chief executive officer. Apple shares lost 1.1 percent.



***Economic Data***

- (BR) Brazil Aug FGV Consumer Confidence: 118.7 v 124.4 prior

- (TU) Turkey Aug Industrial Confidence: 109.8 v 114.1 prior; Capacity Utilization: 76.1% v 74.7%e

- (BR) Brazil July Unemployment Rate: 6.0% v 6.2%e

- (US) Initial Jobless Claims: 417K v 405Ke; Continuing Claims: 3.641M v 3.70Me

- (MX) Mexico Q2 GDP (current $) Y/Y: 8.9% v 7.7%e

- (MX) Mexico July Unemployment Rate: 5.6% v 6.0%e

- (MX) Mexico Q2 Current Account: -$ v -$305Me

- (US) Weekly EIA Natural Gas Inventories: +73 bcf v +70 bcf to +75 bcf expected range