Europe Posting Heavy Losses And Giving Up Gains, Asia Closed Mixed

Asian markets closed mixed on Wednesday despite the Dow Jones industrial making another record high on Tuesday. Investors around the globe are still concerned that the Federal Reserve may taper their ultra-loose monetary policy. The Nikkei 225 was the best performer among the Asian indices, closing with a gain of 0.10% or at 14,326.

The index suffered a choppy session as traders are still paying close attention to the country’s increasing bond yield. However, some export shares did show some strength when Haruhiko Kuroda confirmed that the global economy has not recovered fully from its financial crisis. On the other hand, the Hang Seng index was the worst performer, closing with a loss of -1.61 % or at 22,555.

Sony Corp., Sharp Corp. and Mazda Motor Corp all fell by logging some heavy losses of -0.6%, -4.3% and -0.7% respectively. The financial sector was also under pressure, with Sumitomo Mitsui Trust Holding Inc. and Mizuho Financial group both down by -0.5% and -1.9% respectively.

European stocks were sharply lower during the early hours of trading with the banking sector pushing the indices down. The FTSE 100 is the worst performing index among European indices and is down by almost -1.14%. The CAC 40, DAX, FTSE MIB all are also trading lower with a loss of -1.03%, -1.00% and -0.54%.

The Royal bank of Scotland, Commerzbank AG, Credit Agricole SA are all trading lower and posting a loss of -1.7%, 1.5% and 1% respectively. H&M Hennes and Muritz AB is trading sharply lower as well, after their rating was cut by Goldman Sachs from neutral to sell.

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