Markets and money – July 8

Today’s another mixed day in the markets. Here’s how the major indexes in Asia and Europe did and those in the US are doing.

mkt7809

The Hang Seng and the Nikkei both lost ground following the big sell off in the US markets the day prior.  However, there are numbers to back the sell off.  Disappointing order numbers were reported in Japan and the stronger yen increased worries about the country’s exports. Both India and Taiwan dropped over worries in the economy, with demand from China slowing for Taiwan’s tech companies.

The same happened to the markets in Europe with the FTSE, CAC and DAX all on the red albeit only less than a percent.  They are similarly being dragged down by concerns over the earnings in the US, with Alcoa kicking off the season after the bell today.  The UK is awaiting details on reform to its banks.

All three averages in the US have crossed over to the negative as of this writing, which might extend losses from yesterday.

As for the currencies, here’s where things are:

curr7809

Following the heavy sell-off in the US equities markets, investors flee once again to safe haven currencies, moving the dollar and the yen higher against other major currencies. The Japanese currency, however, prevailed, as it hit a 7-week high against the greenback.  The FT reports: The yen rose 0.6 per cent to Y94.23 against the dollar, climbed 0.7 per cent to Y131.01 against the euro and gained 0.7 per cent to Y151.74 against the pound.

With the commodities leading the drop in the US, currencies with huge exposure to the sector also lost some steam.  Also from the FT:

The Australian dollar fell 0.4 per cent to $0.7866 against the dollar, while the New Zealand dollar eased 0.2 per cent to $0.6283.

Emerging market currencies also came under pressure, with the South African rand falling 1 per cent to R8.1190 against the dollar and the South Korean won easing 0.7 per cent to Won1,277.50.

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