Stocks across the globe are slipping after the powerful earthquake along with a tsunami struck Japan and fears of damage to the Japanese economy are balancing on investors' mood. The 8.9-magnitude earthquake which shook Japan Friday brought on a 10-meter high tsunami along coastal areas. Tsunami signals had been released for nearly 20 countries, including Hawaii and the West Coast. In addition, higher than expected CPI in China signals worries that the Chinese economic system is getting too hot and the local government will likely be forced to slow it down by raising interest rates.
The Feb CPI came in at 4.9%, a fraction higher than the 4.8% envisioned, as the Industrial Production data came in at 14.1% against the estimate 13.3%. This in turn will slow demand from China, effecting commodity exporters world wide.
The Stoxx Europe 600 index was down 0.6% at 276.32 assisted a bit off the session's lows as speculation 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 Financial calendar is fairly thin 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 a smaller amount than estimated and dropped 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 had been for an advancement to 7.7%.
In forex trading, the USD and the Japanese Yen continue to gain from the rising risk aversion signals. Commodity linked currencies such as CAD, AUD, NOK are amongst the greatest losers. NZD is surprisingly trading higher. Commodities are sharply 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 very first time this month.
The Feb CPI came in at 4.9%, a fraction higher than the 4.8% envisioned, as the Industrial Production data came in at 14.1% against the estimate 13.3%. This in turn will slow demand from China, effecting commodity exporters world wide.
The Stoxx Europe 600 index was down 0.6% at 276.32 assisted a bit off the session's lows as speculation 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 Financial calendar is fairly thin 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 a smaller amount than estimated and dropped 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 had been for an advancement to 7.7%.
In forex trading, the USD and the Japanese Yen continue to gain from the rising risk aversion signals. Commodity linked currencies such as CAD, AUD, NOK are amongst the greatest losers. NZD is surprisingly trading higher. Commodities are sharply 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 very first time this month.
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