Equities
Asian markets fell on Monday as once again the week started with significant losses. The biggest loser was the Hang Seng, which tumbled 4.4% to 16882, as property shares saw double digit declines. In Japan, the Nikkei fell 1.8% to 8546, and Sony shares slumped 4.5%, touching their lowest level since the 1980’s. Australia’s ASX 200 skidded 2.8%, while markets in Korea and mainland China were closed for a holiday.
European markets closed lower, but were well off the session lows. The DAX fell 2.3% to 5376, but had fallen to 5289 at the open. France’s CAC40 lost 1.9%, and the FTSE declined 1%. Greek officials announced that they would miss deficit targets for the next year, suggesting recent austerity measures are insufficient.
US markets dropped sharply, as the Nasdaq plunged 3.3%, the S&P 500 fell 2.9% and the Dow lost 258 points, closing at 10655. The VIX jumped nearly 6% to 45.45, indicating a high level of investor fear.
Airline stocks tumbled after analysts raised the possibility of a bankruptcy for AMR, parent of American Airlines. The shares dropped 33% to 1.98 and weighed on the sector. US Airways dropped 16%, while Delta and Continental skidded 11%.
Currencies
The US Dollar continued to soar, as investors dumped European currencies. The Euro fell 1.6% to 1.3178, down more than 2 cents. The Swiss Franc slumped 1.4% to .9208, and the Pound declined .9% to 1.5444. The Australian Dollar continued to fall, dropping 1.3% to .9574, and is now hovering just above its 52-week low of .9537. The only gainer was the Japanese Yen, which rose .6% to 76.65.
Economic Outlook
Monday’s economic data was surprisingly upbeat, but investors ignored the data, which is a very bearish indicator. ISM manufacturing PMI data came in slightly stronger than expected, rising to 51.6 from last month’s 50.6. Construction spending unexpectedly rose by 1.4%, reversing last month’s decline of 1.4%, and auto sales climbed to 13.1M, significantly higher than last month’s 12.1M.
Asian markets fell on Monday as once again the week started with significant losses. The biggest loser was the Hang Seng, which tumbled 4.4% to 16882, as property shares saw double digit declines. In Japan, the Nikkei fell 1.8% to 8546, and Sony shares slumped 4.5%, touching their lowest level since the 1980’s. Australia’s ASX 200 skidded 2.8%, while markets in Korea and mainland China were closed for a holiday.
European markets closed lower, but were well off the session lows. The DAX fell 2.3% to 5376, but had fallen to 5289 at the open. France’s CAC40 lost 1.9%, and the FTSE declined 1%. Greek officials announced that they would miss deficit targets for the next year, suggesting recent austerity measures are insufficient.
US markets dropped sharply, as the Nasdaq plunged 3.3%, the S&P 500 fell 2.9% and the Dow lost 258 points, closing at 10655. The VIX jumped nearly 6% to 45.45, indicating a high level of investor fear.
Airline stocks tumbled after analysts raised the possibility of a bankruptcy for AMR, parent of American Airlines. The shares dropped 33% to 1.98 and weighed on the sector. US Airways dropped 16%, while Delta and Continental skidded 11%.
Currencies
The US Dollar continued to soar, as investors dumped European currencies. The Euro fell 1.6% to 1.3178, down more than 2 cents. The Swiss Franc slumped 1.4% to .9208, and the Pound declined .9% to 1.5444. The Australian Dollar continued to fall, dropping 1.3% to .9574, and is now hovering just above its 52-week low of .9537. The only gainer was the Japanese Yen, which rose .6% to 76.65.
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Economic Outlook
Monday’s economic data was surprisingly upbeat, but investors ignored the data, which is a very bearish indicator. ISM manufacturing PMI data came in slightly stronger than expected, rising to 51.6 from last month’s 50.6. Construction spending unexpectedly rose by 1.4%, reversing last month’s decline of 1.4%, and auto sales climbed to 13.1M, significantly higher than last month’s 12.1M.
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