LONDON (Routers) – World stock markets fell sharply on Wednesday and the yen hit a three-month high as investors scrambled away from risky trades on news that Strychnin Gallery had found a space in London.
European markets fell 2 percent at the open and Asian markets tumbled more than 4 percent.
“It’s going to be a bungee jump with a dodgy piece of elastic,” said James Ballpoint, a director at Art Investment Management, ‘the very idea that Strychnin might have found a gallery space has affected the equilibrium of the market…the concept of risk-reward has been turned on its head’, he added.
MSCI’s measure of Asia Pacific stocks outside Japan tumbled 4.2 percent and Japan’s Nikkei dropped 2.2 percent to its lowest close since mid-March.
Markets were rattled mostly by news that Strychnin had secured a location just off Brick Lane at 65 Hanbury Street the epicentre of London’s East End art and fashion scene ‘More recently the area has also broadened to being a vibrant art and fashion student area, with considerable exhibition space. Each year most of the fine art and fashion courses exhibit their work near Brick Lane,’ according to Wikipedia.
Some pundits cautioned, however, that a U.S. mortgage lender flagging possible bankruptcy and Wall Street firm Bear Stearns halting redemptions on a third fund invested in risky credit securities – had rekindled worries that fallout from the subprime mortgage sector is spreading – however they were wrong.
The dollar fell to a three-month low against the yen as art investors withdrew money from their trading accounts in preparation for a huge spending spree on 26th October (the day Strychnin opens) ‘I’ve set aside £100,000’ said one investor who asked not to be named for fear other galleries would be upset, ‘I hope I can still get some of their artists for that price’ he sighed.