Breaking News

A bloodbath in Asian markets, Yen surges to 15-month high

News Date: 9/2/2016 00:57:36
 
Asian markets tanked on Tuesday as a selloff wave in Europe and the United States reached the shores of Asian countries, nudging fearful investors into safe havens in a frenzied manner. The global turmoil is attributed to deep losses carried by the banking sector in Europe especially, with Deutsche Bank's stocks sinking nearly 10% just yesterday on fears it wouldn't be able to pay back its bond loans.

Japan's Nikkei index plunged 5.26% to 16,113, battered by a sharply stronger yen which diminishes the competitiveness of Japanese exports. Australian shares dropped nearly three percent, while India's Nifty gave up 1.20%. Chinese and Hong Kong markets are closed for a week-long holiday, somehow mitigating the widespread damage.

Safe haven soared as demand jumps for them, with the yen hitting a 15-month high against the dollar at 114.20, before last trading at 114.78, up an impressive 0.91% on the day. Euro dropped to a two-week low versus the Japanese resurgent currency to 128.60, down 0.82%. Yen climbed to a three-week high against sterling at 165.46, up a strong 1.03% on the day.

Wall Street recovered some losses before closing Monday's trading, but was still deeply wounded, with Dow Jones closing down 177 points, or 1.10% at 16,027. NASDAQ Composite fell 79 points, or 1.82% to 4,283, while S&P 500 shed 26 points, or 1.42% to 1,853.

Oil prices clutched some gains amid the pandemonium, with Brent crude futures adding 10 cents, or 0.32% to trade at $32.98 a barrel. U.S. West Texas Intermediary (WTI) crude futures rose 35 cents, or 1.18% to $30.04 a barrel.

The dollar index, which measures the currency's performance against an array of major counterparts, fell 0.16% to 96.69, with the greenback inching down 0.1% against the euro to 1.1204. Sterling gave up 0.13% versus the dollar to trade at 1.4413.

Investors wait for a basket of data today, from Germany, data on industrial production was expected yesterday but got delayed to today. It is expected to have grown 0.2% m/m in December, compared to November's 0.3% drop, which would be positive for the euro.

From The U.S., wholesale inventories are forecast to have fallen 0.1% m/m in December, compared to November's 0.3% drop. A fall in inventories is largely positive as it forces businesses to manufacture and buy new merchandise, reigniting the economy.  

Latest news

Gold futures rose for December delivery according to the Asian session on Friday. As it increased by 0.47%, to be traded at the price of 1959.00 dollars per ounce, and it was previously traded at a
09-2020 18 06:02:31

Oil prices rose this morning, due to the halt in oil and gas production due to a hurricane in the United States of America, as the price of crude oil increased by approximately 1.5%, reaching 41.13 d
09-2020 16 06:30:20

We open the trading week with a rise in gold prices today, after it witnessed a decline in the last days of last week, as it is a safe haven for investors, especially when crises that negatively affe
09-2020 14 06:22:57

Gold prices experienced a remarkable decline at the beginning of the week after it concluded its Asian trading at a high, affected by the great rush of investors, if this morning the gold futures con
08-2020 31 08:11:31

We start today's events, Tuesday, by the rise in oil prices affected by the easing of precautionary measures to combat turquoise corona in the world. US West Texas crude futures are expected to decre
08-2020 26 04:51:45

More News

Logs

Advertisements