Global Markets- Nikkei Plunges 6.4%; Europe Shares Drop Sharply

Posted by Prydextv on Jun. 13, 2013

Tell the world:

time to go overseas for this moaning's market selloff. did i get it wrong? is it ross westgate? no, you got it right. i'm wrong. ross westgate is in london. let's begin in tokyo this morning. thanks a lot. let's take a look at the equity markets here in japan. another big selloff started on that may 23rd date that we remember after the 22nd event by the u.s. federal reserve. we had these repeated lurches lower. today we saw 6.5% drop in the nikkei 225. multiple layers today. everyone that spoke today whether it be the chief government spokesperson the bank of japan governor, the economics minister they didn't go beyond the standard line of oh, we're not going to continue day-to-day moves and that was a little bit of trigger for this new move south in the nikkei 225. twice in a week now we're entering bear market territory. many of the strategists i speak to here in japan say this is part of that correction that started three weeks ago and say this may continue for another two or three weeks. having said that there's another dimension today which, of course, is the yen and we've seen very violent moves lower in the dollar/yen. this isn't problem per se for the exporters in particular although many rt stocks like toyota are moving lower because companies in japan are conservative in their estimates. even if dollar/yen was shooting up to 100 when they gave their forecast they were factoring in an exchange rate of roughly between 90 and 95. these levels don't alter that scenario.

Categories Money

Tags economy, finance, forex, market, trading

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