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Asia Plunges On Greece And China Fears

ByBinary Options Strategy
Published 05/17/2012, 07:27 AM
Updated 05/14/2017, 06:45 AM
NDX
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DE40
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JP225
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HK50
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Equities

Asian markets tanked on Wednesday, as the political deadlock in Greece escalated fears that Greece may exit the eurozone. Fears of a slowdown in China added to the anxiety, as data showed loan growth stalled in the first half of May. The Shanghai Composite fell 1.2%, and the Hang Seng plunged 3.2%, as Chinese banks dropped sharply. Japan’s Nikkei shed 1.1% to 8801, the Kospi sank 3.1% to 1841, and the ASX 200 slumped 2.4%.

The leading European indexes closed mixed, as the CAC40 edged up .3%, while the FTSE dropped .6%, and the DAX slipped .3%. Shipping giant, Maerk issued a cautious outlook on freight rates due to economic slowness, sending its shares down 6.5%.

German Chancellor Angela Merkel said Germany wants Greece to stay in the euro, but rumors the ECB may stop dealing with certain Greek banks undermined her remarks.

US stocks ended lower in a volatile session. The Dow slipped 33 points to 12599, the Nasdaq dropped .7% to 2874, and the S&P 500 fell .4% to 1325.
DJI CHART
Dow Surrenders Early Gains To Close Lower

JC Penney shares plunged 19.7% after reporting a loss which was larger than forecast, and Abercrombie & Fitch tumbled 13% on weak sales data.

Currencies

Wednesday was another winning day for the US dollar. The pound and Canadian dollar both dropped .6%, while the euro and Swiss franc edged down .2%. The Australian dollar slid .4% to .9905, and the yen eased .1% to 80.30.

Economic Outlook

Housing data was mixed, as housing starts rose to .72M from .7M, beating estimates, while building permits fell to .72< from .77M, below estimates. Industrial production increased by 1.1%, beating estimates. The Fed’s minutes showed several policymakers favored additional easing efforts if the economic recovery stagnates.

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