Markets Continue To Decline On Poor Outlook

Asian trade: The Asian market declined tonight, following the negative close in the European and U.S. markets on Friday. Commodities and technology stocks led the selling waves in the equity markets tonight.

Equity markets decline, as the growth outlook deteriorates even further. A shrinking export market, with a huge slump in internal consumption is sending the Asian markets lower. Tonight, a report showed that exports tumbled in December by 32.8% in South Korea, which is by far the most since the index first began in the late 1950’s. Similar outcomes can be seen in most Asian countries, as their economies are based on exports.

The huge slump in the foreign market and the strength the yen posts lately are causing huge losses to the Japanese companies. In the fourth quarter, earnings tumbled by a whopping 85% for Japanese based companies, and some say this might continue into the first and second quarter of the current year. Also tonight, Japan’s biggest lobby group complained about the yen’s strength, saying the government should start to sell the currency. The yen’s appreciation is a side effect of the ultra-low interest rates in the Japanese financial system.

Tonight, the Nikkei slumped 38.30 points (0.48%) to 7,955.75. The Australian S&P/Asx fell 27.10 points (0.77%) to 3,513.60.

Crude oil tries to find a direction to trade in. Crude oil for February delivery rose $0.10 to $41.90.

Gold opened lower, after three weeks of gains. Bullion for immediate delivery fell $7.30 to $917.50.

Previous Wall Street trade: At the close of floor trading on the NYSE, the DOW was on 8000.88 after falling 148.15 points (-1.82%) while the S&P finished on 825.88 after declining 825.88 points (-2.28%). The tech-heavy NASDAQ closed on 1478.42 after losing 31.42 points (-2.08%). Bonds were bought as stocks declined. The yield on the 2-year note fell 1.5 basis points to 0.950% while yield on the benchmark 10-year note fell 1.4 basis points to 2.849%. The dollar traded mixed on the day, gaining 1.13% on the euro and 2.3% against Australia's currency while it fell 0.13% to the yen and 1.69% against the pound.

Previous European trade: In Europe, the U.K. Ftse fell 40.47 points (--.97 %) to 3,999.31, while the German Dax fell 89.75 points (-2.03%) to 4,368.43.