TN15G Free topic_October 19th 1987 – The gloomy Monday_Hong Nhung Pham_October 26th 2010

Student's name: Hong Nhung Pham
Class: TN15G
Ha Noi, October 26th 2010
Dear Mr VietAnh
October 19th 1987 – The gloomy Monday

Before this day, the big finance markets of the world were bull state together. In 12 years, London market continuously increased, from January to September 1987 alone FTSE Index was raised 75 percent and the average traded shares was 800 million pound each day.
At New York, the indexes increased 30 percent together. Situation of other markets as Tokyo, Frankfurt, Hongkong also liked this. Average World Index increased 40 percent on beginning of the year.
However as a vortex, no sign was warned, suddenly occur, on October 19th 1987 at London market FTSE Index suddenly reduced 30 percent in 3 days alone. At New York market the indexes continuously reduced until the end of October, it was lower than beginning of the year indexes. Due to Hanse Index reduced 10 percent at Hongkong market on October 19th alone, the authorities must close market. On October 26th the market open back, Hansen Index continued reducing 33 percent. Although in the particular Tokyo market was influenced, level wasn’t serious. It was difficult to bring out specific figures (although estimation) about finance losses towards investors after “The gloomy Monday” event. However, with the global influence level, the event made a finance crisis and it was one of the main causes to bring out global economic regression on beginning of 1990s of the 20th century. Until now, many individuals and organizations are still tried to explain, learn causes of the crisis. Learning many lessons from it, inside there are lessons about finance risk management, specially financial institutions.
Your student,
Nhung