Japan's Nikkei Plunges 7%; U.S. Stocks Indicated Lower
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Japan's Nikkei sold off an astonishing 7.32% Thursday, a day after Federal Reserve Chairman Ben Bernanke warned about potential "bubbles," FOMC members suggested tapering of QE by the June meeting and amid slowing manufacturing in China.
Up 50 percent year-to-date before today's swoon, amid the ultra-easy money policies of Japanese prime minster Shinzō Abe, dubbed 'abenomics', today's sell-off comes as no surprise to some.
On Wednesday, U.S. stocks saw their biggest slide in weeks after Fed Chairman Ben Bernanke's "bubbles" mention and comments from the FOMC minutes that "A number of participants expressed willingness to adjust the flow of purchases downward as early as the June meeting..."
Today, HSBC's China Manufacturing Purchasing Mangers' Index fell to 49.6 in May from 50.4 in April, a seven-month low. The reading below 50 signals a contraction of activity.
As would be expected, U.S. markets are indicated to open sharply lower on the Japanese sell-off. Dow futures are indicated to open 136 points lower, S&P 500 futures are off 18, and the Nasdaq is indicated to open down 32.
Japan's Nikkei sold off an astonishing 7.32% Thursday, a day after Federal Reserve Chairman Ben Bernanke warned about potential "bubbles," FOMC members suggested tapering of QE by the June meeting and amid slowing manufacturing in China.
Up 50 percent year-to-date before today's swoon, amid the ultra-easy money policies of Japanese prime minster Shinzō Abe, dubbed 'abenomics', today's sell-off comes as no surprise to some.
On Wednesday, U.S. stocks saw their biggest slide in weeks after Fed Chairman Ben Bernanke's "bubbles" mention and comments from the FOMC minutes that "A number of participants expressed willingness to adjust the flow of purchases downward as early as the June meeting..."
Today, HSBC's China Manufacturing Purchasing Mangers' Index fell to 49.6 in May from 50.4 in April, a seven-month low. The reading below 50 signals a contraction of activity.
As would be expected, U.S. markets are indicated to open sharply lower on the Japanese sell-off. Dow futures are indicated to open 136 points lower, S&P 500 futures are off 18, and the Nasdaq is indicated to open down 32.
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