Another Losing Day For Europe And Asia

Asian markets spent most of the session in a deep red territory before recovering some of their losses during the final hours of trading. The Nikkei 225 which has lost almost 16% from its highs of this year, closed with some minor loss of -0.21%. Volume was very thin during the Asian trading as mainland China and Hong Kong were closed on account of a public holiday. Traders remained disappointed in Asia as there was no further stimulus announcement from the Bank of Japan.

The Yen's weakness later in the Asian session helped some of the exporters to recover from their earlier losses. Nikon Corp and Mitsubishi Heavy industries Ltd both closed up with a gain of 1.7% and 3.5%. However, this does not represent the broader picture for the market, as major companies were not fully able to recover from their losses. Renesas Electronics Corp., Toyota Motor Corp and Nissan Motor Corp all closed with a loss of -2.4%, -1.8% and -2.3% respectively.

Europeans are also trading lower, but off of their lows during the early hours of trading. The DAX is the worst performing index during the session and is down by nearly -0.26%. The FTSE 100 and CAC 40 are also trading lower with a loss of -0.14% and -0.01% respectively. However, the IBEX 35 managed some gains, and is trading up by almost 0.49%.

Traders are focused towards Germany’s Constitutional Court hearing, which is looking closely on the legality of the European Central bank’s bond buying program. Vodafone shares are trading lower by -1.7% after the company confirmed that it has made a preliminary offer for the German TV and internet provider. Volkswagen shares also came under pressure after the company recalled almost 26K vehicles and is down by almost -2.2%

DISCLOSURE & DISCLAIMER:
The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.

by Naeem Aslam