Stocks across the globe are falling after a powerful earthquake and a tsunami struck Japan and concerns of damage to the Japanese economy are balancing on investors’ spirits. The 8.9-magnitude earthquake that shook Japan Friday brought about a 10-meter high tsunami along seaside regions. Tsunami signals have been released for almost twenty countries, such as Hawaii and the West Coast. Furthermore, higher than expected CPI in China signals concerns that the Chinese economic climate is overheating and the local government will be forced to slow it down by raising interest rates.
The Feb CPI came in at 4.9%, a small percentage greater than the 4.8% envisioned, while the Industrial Production statistics came in at 14.1% against the forecast 13.3%. Consequently, this will slow demand from China, effecting commodity exporters internationally.
The Stoxx Europe 600 index was down 0.6% at 276.32 assisted a little off the session’s lows as supposition that Portugal would be bailed out by the European Union gathered traction. London’s FTSE 100 index was down 0.4% at 5824.66, Frankfurt’s DAX fell 0.9% to 6999.32, and Paris’s CAC-40 was 0.7% lower at 3935.75. Futures on the Dow Jones Industrial Average fell 76 points to 11907 and futures on the Standard & Poor’s 500 index slid 6 points to 1283.50. Asian stock markets closed in the red Friday. Australia’s S&P/ASX 200 dropped 1.2% and South Korea’s Kospi Composite lost 1.3%. Hong Kong’s Hang Seng Index fell 1.5% and China’s Shanghai Composite shed 0.8%.
The Economic calendar is rather sparse today. The PPI in U.K. printed at 1.1% below 1.4% estimate and dramatically lower January’s 2.3% increase. Canada’s employment expanded less than estimated and declined from January’s 69.2K added jobs to just 15.1K added last month. The unemployment rate in Canada remained at 7.8% in February as in January; the general opinion was for an advancement to 7.7%.
In forex trading, the USD and the Japanese Yen continue to benefit from the rising risk aversion signals. Commodity connected foreign currencies such as CAD, AUD, NOK are amongst the biggest losers. NZD is amazingly trading higher. Commodities are dramatically lower with Silver leading the pack. Silver is down 2.63% to US$34.40 an ounce, gold is flat at US$1412.11 per ounce and crude oil WTI mark traded below US$100 per barrel for the 1st time this month.
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