Thursday, March 17, 2011

JAPAN - UP and DOWN

From friday onwards, Japan has been having a set of events which is as intense as the Middle East protests. There it was the oil, which is on risk, here it is a whole country on verge of a nuclear disaster.


These sort of news dominated the global markets and yet, there was another negative mark on the NIKKEI 225 index, which was down 1.44% today, classing at 8,967.62 points, being down by 131.05 points.

Asian stock and currency markets were roiled in early trade as equities on Wall Street tumbled after Greg Jaczko, chairman of the Nuclear Regulatory Commission, said the risk of radiation was more serious than Japanese officials had outlined in public, and recommended a “much larger radius” for evacuations.

NIKKEI 225 03/17 close
Among major declining stocks, Canon Inc. (JP:7751 3,470, -120.00, -3.34%) (CAJ 42.69, -3.04, -6.65%) dropped 3.3%, Toyota Motor Corp. (TM 80.41, -0.98, -1.20%) (JP:7203 3,270, -75.00, -2.24%) shed 2.2%, Fanuc Ltd. (FANUY 24.75, -1.60, -6.07%) (JP:6954 11,370, -470.00, -3.97%) gave up 4%, Fast Retailing Co.(JP:9983 9,620, -310.00, -3.12%) (FRCOY 11.88, -0.71, -5.64%) slid 3.1% and Mitsubishi UFJ Financial Group (MTU 4.53, -0.30, -6.21%) (JP:8306 363.00, -18.00, -4.72%) sank 4.7%.

Warnings of "possible catastrophic events" and a Japanese nuclear power plant "effectively out of control" from the EU energy commissioner, G√ľnther Oettinger, sent US and European stocks tumbling and bonds soaring briefly in the afternoon. Then an admission from Mr Oettinger's spokeswoman that the comments were general rather than specific pared the losses.

The Japanese yen hit 16 year high against the dollar of Y80. Jeremy Cook, chief economist at World First said: "The Y80 level is a massive psychological level in the markets."

Now this isn't just a single center point to focus on at this point, the global markets are going through a set of events that are changing the numbers every minute. We have Libya, then we have Portugal's debt, then the Brent Oil is rising and at intra trade was at $111 a barrel level, with some radiated concerns from Japan. Its all to be heard at the same time, and we can only hope that the world can withstand such a situation, and there isn't a need for a G7 intervention as well
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