Hong Kong: Markets across Asia are in the red this morning, weighed down by the usual suspects – prospects for the global economy and renewed fears about the escalation of the sovereign debt crisis in Greece and Spain.
As at 7.30 am IST, Nifty futures are down about one-half of 1 percent. They were down by a lot more in early trades – in excess of eight-tenths of 1 percent – but have since retraced some of that sharp downslide. Elsewhere across the Asia-Pacific region, most indices are similarly clawing back from a sharp fall at the start.
Tokyo’s Nikkei, however, is the hardest to fall, down over 1.3 percent on a stronger yen, which is hurting exporters. Hong Kong’s Hang Seng Index too is down about four-tenths of 1 percent, up a tick in volatile trades from where it was at the start of trading day. The Shanghai Composite is faring a lot better, up about one-tenths of 1 percent, but then, it’s always been a market that marches to the beat of its own drum.
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Those early morning sharp falls were triggered by another horrendous trading day on Wall Street, which saw its third straight day of losses: the Dow Jones Industrial Average index, in particular, fell by triple digits for the the third successive day. Investor sentiment was weighed down by fears from Europe that Greece may not be done with debt restructuring, and Spain would need a bailout.
US corporate earnings came in weak, with Apple missing its topline and bottomline target by a mile, on lower than expected iPhone sales.
Back home, analysts are fretting about the absence of the promised policy action from the government even after the Presidential election process has been completed. The extent of shortfall of a deficient monsoon is beginning to become clear, and could also drag down sentiment.
Overall, we’ll likely see a volatile day of trading after a slightly weak start to the trading day.