Monday, April 23, 2012

EMERGENCY: Russian Stock Market Micex Closed Indefinitely & Entire Cabinet of The Netherlands Resigned Over Budget Issues

This is not a drill – the Russian Stock Market has closed indefinitely, and reports are that the Russian Government has declared it an Emergency. In other news, the entire cabinet of The Netherlands resigned this morning because they could not come to an accord over budget and austerity issues…

IMAGE below from:

Yes, this is the Russian stock market. 

From Bloomberg:

"Russian stocks sank the most in more than two weeks as commodities slid after data showed China’s manufacturing contracted for a sixth month. The benchmark Micex suspended trading, citing problems with the way deals are displayed.
The Micex Index (VTBMICX) of 30 shares lost 2.4 percent to 1,469.07 by 6:09 p.m. in Moscow, poised for its biggest one-day loss since April 4. OAO GMK Norilsk Nickel, the world’s biggest producer of the metal, sank 3.1 percent. VTB Group, Russia’s second largest lender, retreated 3.7 percent. Oil producers OAO Tatneft and OAO Rosneft, fell 3.3 percent and 3 percent, respectively."

Entire Netherlands Cabinet Resigns

From the WSJ:
"Dutch Prime Minister Mark Rutte and his cabinet have resigned after failing to reach agreement on reducing the country's budget to meet European guidelines, the Dutch government information service said Monday.

The information service said that Mr. Rutte had met with Queen Beatrix and she had accepted his resignation, asking him to tend to pressing matters of state with a caretaker government for the time being. Mr. Rutte is due to address parliament Tuesday afternoon to discuss interim budget cuts and schedule new elections.

Talks over measures to slash the government's budget deficit collapsed over the weekend after seven weeks of negotiations, raising questions about the future commitment of one of the euro zone's foremost proponents of fiscal stringency to a German-led austerity agenda.

The Netherlands has been a key ally of Germany and one of the most vociferous supporters of austerity since Greece's debt problems initiated the euro-zone's debt crisis more than two years ago. But its economy is performing poorly and is expected to shrink this year, widening its budget deficit and making it one of the worst-performing in the euro zone.

The talks collapsed after the right-wing Freedom Party pulled out of talks with Mr. Rutte's center-right liberal party. The negotiations had been aimed at cutting the budget deficit to 3% of gross domestic product next year, in line with European Union rules, from a forecast 4.6%"

Related Articles:

Eurozone Crash, Dutch Government Collapse, Czech on the Verge of Collapse and Russian Stock Market Halted
Micex Group
Russia Stocks Sink Most in 2 Weeks on China; Micex Halts Trading
Russia’s MICEX-RTS exchange suspends stocks trading

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