Global Markets Sell off Including Indian Stocks As Japan Nuclear Crisis Deepens
Posted: Tuesday, March 15, 2011
by Dakhsh Jain
Winfromus.com
Global stock markets along Indian stocks has seen a massive sell off today. The world is horrified with what happened and whats happening in Japan. Nuclear radiation in Japan has reached dangerious levels of 130 times above the normal levels warned The International Atomic Energy Agency.
More than 10000 people are estimated to have lost lives in the worst quake and tsunami in Japanese 140 years of history.
More than the tsunami or earthquake effect on the global or Indian financial market, its the fear of nuclear radiation taking its toll on world markets. In a nationally televised statement, Prime Minister Naoto Kan said radiation had spread from the four stricken reactors of the Fukushima Dai-ichi nuclear plant along Japan's northeastern coast.
Nikkei Stock Average plunging more than 14% at one point in afternoon trade before recovering slightly to end down 10.6 percent. That is its worst drop in a single day since 2008. The fall today in the market came on top of Monday's 6.2% tumble.
The Japanese sell off hurt sentiment across Asia amongst Global Investors. Hong Kong's Hang Seng index closed down 2.6% and South Korea's Kospi fell 2.4%.
India's leading stock exchanges benchmark index closed the day near 2% lower on Nifty and Sensex after being down as much as 3% at one point of time in the afternoon Intraday.
Germax index Dax is down almost 5% at this moment while writing. It has been the worst hit after Nikkei as technology companies and car makers rely heavily on the Japanese suppliers for some crucial parts.
Other markets like FTSE 100 and CAC 40 are trading lower 2.15% and 3.4% respectively.
New York Stock exchange (NYSE-U.S Markets) leading indices Dow Jones and Nasdaq opened almost 3% (300 points) lower after recovering somewhat, Dow is currently down a little over 1.5%
Crude Oil prices fell $3.95 to $97.22 as analysts anticipated lower demand in the aftermath of the deadly earthquake and tsunami. Other commodities, including gold, silver and copper, also fell.
It might sound petty to talk of any kind of financial benefits at this moment out of all the above said, but falling Crude Oil price is somewhat a positive effect for India's Economy and global airline stocks. The lesser this commodity boils, the better Indian stocks and Inflation can do.
Though the chances of Crude Oil price going down is likely to be short lived since the violence and protest in some part of Libya is reported to be growing.
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