Dec 2, 2004

Shake it up?

" The Singapore Exchange scrambled on Wednesday to limit damage from the biggest scandal to hit it since rogue British trader Nick Leeson felled Barings bank, ordering an inquiry into a $550m (€413m) derivatives loss by a Chinese company.

China Aviation Oil, one of Singapore's top China-related listings, sought court protection after running up the loss trading oil derivatives. The loss amounted to more than CAO's market value." - FT.

My guess is that this will really pummel oil tomorrow. It could have a broader effect on Asian shares or even banking shares here. My best guess though is that the market is too bulled up to get pulled down and any negative effect will be offset if oil does come off.

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