The past week has seen a broad sell-off of commodities, equities and emerging markets bonds and a rally in the dollar that has been reminiscent of the rout surrounding the collapse of Lehman Brothers investment bank three years ago.
Today Markets fell but moved off their lows in the afternoon session as we predicted yesterday, Commodities continued to slide, with copper, which is highly sensitive to expectations for global growth, falling 3 percent to $7,036.75 a tonne.
Spearheading today's losses were the big miners, with Rio Tinto down 2.5 per cent at $62.45 and BHP Billiton down 1.35 per cent at $35.04.
The MSCI Asia Pacific Index lost 0.1 per cent to 113.69 in Tokyo, with more than four stocks rising for every five three that fell. The measure is headed for a 9 per cent decline this month, the most since October 2008 when credit markets froze following the collapse of Lehman Brothers.
Asian stocks pared losses on speculation German lawmakers will approve a measure to expand a bailout fund for Europe's debt-stricken nations and as orders for US capital goods unexpectedly climbed.
Samsung, the world's second-biggest maker of mobile phones by sales, climbed 4.8 per cent in Seoul. Mitsubishi UFJ Financial Group, Japan's largest lender, gained 1.7 per cent on optimism the German vote will ease concerns about the global financial system. BHP Billiton, the world's largest mining company and Australia's No. 1 oil and gas producer, declined 2.2 per cent after crude and metals prices fell.
U.S. crude oil futures fell 0.6 percent to $80.70 a barrel and Brent crude lost 0.4 percent to $103.37.
Gold, which has seen a shift from a negative to a positive correlation with riskier assets over the past week or so as investors seeking safety have turned their back on the metal in favor of the dollar and U.S. Treasuries, fell 0.2 percent to around $1,605 an ounce.
Japanese government bonds were in demand for their safe haven appeal, with the benchmark 10-year yield falling 1 basis point to 0.995 percent following similar moves in Treasuries, where the 10-year yield dipped back below 2 percent on Wednesday.
Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.
Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services. www.livetradingnews.com
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