7 Times Halloween Jinxed The Financial Markets

Halloween is synonymous with costumes, candy, and spooky stories. But that’s not all. Over the years, October 31 has also been a day of significant financial events. From stock market crashes to major corporate moves, Halloween has left its mark on the world of finance in some weird ways. These are spooky, especially #5.

1. Halloween Massacre of 2006 — Canada’s Income Trust Changes

On October 31, 2006, the Canadian government, led by Prime Minister Stephen Harper, announced a sudden policy shift that would tax income trusts, effectively ending their tax-advantaged status. Before this change, income trusts were popular with investors because they allowed corporations to avoid corporate income taxes, distributing profits directly to investors. This Halloween surprise wiped billions off the value of trusts, and the day became known as the “Halloween Massacre” in Canadian financial history.

2. The Beginning of the End for Lehman Brothers (2007)

One year before the global financial crisis reached its peak, on Halloween in 2007, Lehman Brothers reported significant losses from its mortgage-related assets. Although the firm hadn’t yet collapsed, these early signs of trouble foreshadowed the catastrophic events of 2008. By September 2008, Lehman Brothers filed for the largest bankruptcy in U.S. history, triggering a domino effect that led to the financial crisis.

3. Japan’s Bank of Tokyo-Mitsubishi Merger (1995)

On October 31, 1995, two of Japan’s largest banks, the Bank of Tokyo and Mitsubishi Bank, announced a merger that created the Bank of Tokyo-Mitsubishi, which at the time became the world’s largest bank by assets. This move was part of Japan’s broader efforts to deal with its own financial challenges in the 1990s, following the collapse of the country’s asset price bubble.

4. Brexit Reboot: Bank of England Rate Cut Signals (2019)

On Halloween in 2019, the Bank of England made headlines by hinting at a potential interest rate cut, depending on the economic impact of Brexit. With the UK set to leave the European Union, the uncertainty had affected markets and currency exchange rates. Although Brexit was ultimately delayed until early 2020, this Halloween event reflected the mounting financial anxieties in the run-up to the historic exit.

5. The New York Stock Exchange Plunge of 1929

Though the infamous “Black Tuesday” occurred on October 29, 1929, Halloween that year witnessed the aftermath of the Great Crash as panic spread through global markets. The New York Stock Exchange remained chaotic throughout the week, with massive sell-offs continuing as investors scrambled to protect their assets. The Halloween aftermath solidified the start of the Great Depression, one of the darkest periods in financial history.

6. The End of the Bretton Woods System (1971)

Halloween 1971 marked a pivotal moment in international finance as the U.S. formally abandoned the Bretton Woods system of fixed exchange rates, following President Nixon’s decision earlier that year to suspend the dollar’s convertibility into gold. The dollar began floating freely against other currencies, and this shift ultimately transformed global foreign exchange markets. This move is seen as the dawn of the modern era of floating exchange rates.

7. GM’s Second Bankruptcy Rumours (2013)

On October 31, 2013, General Motors (GM) was battling rumours of a second potential bankruptcy following its 2009 collapse and subsequent government bailout. The rumours caused GM’s stock to drop and sparked discussions about the company’s long-term viability. Although GM managed to survive, the Halloween scare underscored the fragile state of the American auto industry during the recovery period.

While Halloween is often associated with ghost stories and horror films, it has also proven to be a significant date in financial history. From stock market plunges to strategic corporate acquisitions, October 31 has witnessed events that shaped economies, industries, and markets.

Coincidence or something spookier? Leave your comments below and Happy Halloween!