Skip to comments.Asia Stocks Extend Rout After US Selloff; Nikkei Dives 4% On Strong Yen
Posted on 02/04/2014 1:30:16 AM PST by blam
Asia Stocks Extend Rout After US Selloff; Nikkei Dives 4% On Strong Yen
Published: Tuesday, 4 Feb 2014 | 1:23 AM ET
By: Nyshka Chandran
Assistant Producer, CNBC Asia-Pacific
Asian equity markets suffered heavy losses on Tuesday after Wall Street shares tumbled overnight as weak economic data sparked fears of a slowing U.S. economy.
U.S. stocks saw their worst start to February since 1933 after a manufacturing report heightened concern about the economy before Friday's monthly jobs report. Overall factory activity hit an eight-month low in January as new order growth plunged by the most in 33 years.
In a sign of heightened investor jitters, the CBOE Volatility Index rose above 20 on Monday for the first time in four months, while the yield on the 10-year Treasury note hit a three-month low.
"Suffice to say investors should steer clear of risk assets over the short term as the turmoil does not look like it will be over anytime soon. A combination of tapering, a confluence of country specific emerging market country concerns and weaker growth in China provide the backdrop for a volatile few weeks if not longer, ahead," said analysts at Credit Agricole.
(Excerpt) Read more at cnbc.com ...
When the American economy suffers, the world suffers.
Obama is trying to destory the US economy. In doing this, he is destorying the global economy.
The Democrats and GOPe had decided to sit back and watch it happen. How long before the rest of the world decides that enough is enough?
"Stock markets in the U.S., Japan and Europe appear to have joined emerging markets in the doldrums, but is the sharp sell-off just a rumble or is a deeper rout on its way?"
"The consensus so far is this: equities could fall further especially if economic data disappoints, but until that happens the big picture of a brighter growth outlook has not changed so don't panic just yet."
" In recent times, we felt comfortable leaning into this decline, arguing that idiosyncratic issues in Turkey, Argentina and/or the Ukraine were ultimately unlikely to augur poorly for U.S. equities for more than a few sessions. However, Japanese stocks are now down 13% including the decline occurring as you read this, European equities are down by 6.4% and U.S. equities are off by 5.7%.
In the U.S., slowing economic data in December and January have raised concerns that (either) the Fed is reducing its accommodative policy at the wrong time or the reduction is leading to said weakness. In either case, global economic indicators are slowing and here in the U.S., investors are growing concerned there is more than weather plaguing the economy."
And just what is “the rest of the world” going to do about it?
Bubble, bubble, bubble.
I dunno. Maybe ask China if they want to continue buying the US debt?
Maybe there will be a few more Benghazi incidents... But for other reasons. Some people/countries begin to act irrational when their citizens begin to riot. They always try to blame outside factors. In this case, you’ve got Obama purposely destroying the US and global economy.
Maybe China will be compelled to fire another warning missile off the US coastline?
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