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Friday, September 13, 2024
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Economy

Stock markets: The day after the “bleeding” of 6.4 trillion dollars

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Japanese markets moved higher, leading Asia to gains and paring some of Monday's heavy losses

Χρηματιστorρια: Η επμ εμρατημογα» ;ων 6.4 τισδοαρων /></p> <p>Japanese markets edged higher, leading Asia to gains and paring some of Monday's heavy losses, when a global sell-off wiped billions of capital out of stock markets from New York to London. Futures are showing gains in Europe and on Wall Street after 6.4 trillion were lost, according to Bloomberg estimates. dollars of market capitalization over the past three weeks.</p> <p>Japan's two main indexes rallied nearly 11 percent after losing more than 12 percent yesterday. South Korea's Kospi rose 3%.</p> <p>Speculation of a looming US recession, the reversal of euphoria around artificial intelligence and a rise in the yen that “spoilt” the carry trade led in a three-day sell-out in international markets.</p> <p>Market veteran Ed Yardeni said the sell off bears some resemblance to the crash of 1987, when the US economy avoided a recession despite investor fears at the time. Analysts at JP Morgan and Morgan Stanley expect stocks to remain under pressure.</p> <p>Last night on Wall Street, the Dow Jones had its worst session in nearly two years, falling 1,033, 99 points or 2.6% to close at 38,703.27 points. The Nasdaq lost 3.43% to end at 16,200.08, while the S&P 500 lost 3% to 5,186.33. The blue chip index and the S&P 500 posted their biggest daily losses since September 2022.</p> <p>The VIX index, which tracks volatility, closed at 38.57, the highest level since October 2020.</p> <p>Investors continued to liquidate top technology stocks, especially in the artificial intelligence space: the stock of Nvidia tumbled 6.4% in Monday's session, bringing its losses from 52-week highs to 29%. Apple sank 4.8%, Tesla 4.2% and Super Micro Computer 2.5%.</p> <p>It has also opened a market debate that behind the massive liquidations is the destabilization of the carry trade after the Japanese central bank decided to raise interest rates last week, narrowing the interest rate differential between Japan and the US. This contributed to the yen's rise against the dollar, leading to a collapse of the strategy whereby investors borrow in low-yielding currencies such as the yen to buy high-yielding currencies such as the dollar.</p> <p><noindex></p> <div class=Source: www.kathimerini.com.cy

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