Wednesday, April 16, 2014
YOLO COUNTY NEWS
99 CENTS

Markets steady despite massive sell-off in Japan

LONDON (AP) — Markets in Europe and the U.S. stabilized Tuesday after the turmoil of the previous day reverberated into the Asian trading session. Lingering concerns over the U.S. economy and emerging markets kept the mood jittery, however.

Traders held their nerve despite the earlier 4.2 percent dive on Tokyo’s Nikkei 225, which sent the leading Japanese stock index to a four-month low.

David Madden, market analyst at IG, said stocks were “holding up relatively well” considering the massive sell-off in Japan overnight.

“Traders are treading lightly, not wanting to get stung if there is a sudden exodus from equities,” he added.

In Europe, the FTSE 100 index of leading British shares fell 0.3 percent to close at 6,449.27 while Germany’s DAX fell 0.6 percent to 9,127.91. The CAC-40 in France edged up 0.2 percent to 4,117.45.

On Wall Street, stocks rebounded a day after a disappointing manufacturing survey from the Institute for Supply Management saw them suffer their worst day in seven months. The Dow Jones industrial average was up 0.5 percent at 15,454 while the broader S&P 500 index rose 0.8 percent to 1,755.

The turmoil that has afflicted financial markets over the past few weeks has a number of causes. Some analysts think it’s a long-overdue correction in stock values that will eventually ease. Many indexes had finished 2013 at record highs.

Others think it’s likely to last longer, not least because the U.S. Federal Reserve is reducing its monetary stimulus. The stimulus, in its various guises, has helped shore up markets, particularly in developing countries from Brazil to Turkey to India, since the financial crisis.

Investors may also be getting nervous about the fact that U.S. lawmakers have yet to agree on a deal to lift the debt ceiling this month. If they don’t, the U.S. faces the prospect of defaulting on some of its debts.

“What we’re seeing in the markets so far this year may not be investors panicking about the turmoil in emerging markets, or the ongoing weaknesses in corporate earnings, or even the poor data coming out of the U.S.,” said Craig Erlam, market analyst at Alpari.

“Instead, I believe these are all simply being used as an excuse for investors to allow for the significant correction that many investors have been calling for, for a number of months now,” he added.

The focus of attention will likely remain on the U.S. this week as a run of economic data culminates on Friday with the nonfarm payrolls report for January. The jobs data often set the market tone for a week or two. Investors will be looking to see if the negative winter-related impact that was evident in the ISM survey has translated into job hiring, too.

There’s also Thursday’s policy meeting of the European Central Bank. Analysts say the bank will be under pressure to ease policy further as inflation remains stubbornly low despite recent signs of life in the eurozone economy.

Given the importance of upcoming events, many analysts think volatility will likely remain this week.

Earlier, Japan led the slide in Asian stocks. The Nikkei tumbled 4.2 percent to 14,008.47 and is down 14 percent over the past month. Elsewhere, South Korea’s Kospi shed 1.7 percent to 1,886.85 and Hong Kong’s Hang Seng declined 2.9 percent to 21,397.77 on its first day of trading following a 4-day weekend for Lunar New Year. Markets in China and Taiwan were closed.

There was a calmer tone in other financial markets, too. Among currencies the euro was down 0.2 percent at $1.3505 while the dollar rose 0.6 percent to 101.61 yen. Meanwhile, a barrel of benchmark New York crude was 95 cents a barrel higher at $97.40.

————

By Pan Pylas, AP business writer

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Davis Enterprise does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

News

 
‘Eco-Heroes’ help get us from here to there

By Special to The Enterprise | From Page: A1, 2 Comments | Gallery

 
 
Home building up in March after frigid winter

By The Associated Press | From Page: A2

 
Davis elder-abuse case wraps up

By Lauren Keene | From Page: A2

Alleged serial killings highlight GPS limits

By The Associated Press | From Page: A2

 
CHP seeks owner of lost cash

By Lauren Keene | From Page: A2

Family fiction in miniature showcased at bookstore event

By Special to The Enterprise | From Page: A3 | Gallery

 
Local professor subdues unruly man on flight

By Adrian Glass-Moore | From Page: A3, 1 Comment

Rotarians, students, teachers, parents collaborate on planter boxes

By Enterprise staff | From Page: A4 | Gallery

 
Yolo Crisis Nursery is in crisis; please help

By Special to The Enterprise | From Page: A4

Meditation, Buddhism classes offered

By Enterprise staff | From Page: A4

 
Seniors can get tips for getting around town

By Enterprise staff | From Page: A4

School has garden plots for rent

By Enterprise staff | From Page: A4

 
Sugar overload, on ‘Davisville’

By Enterprise staff | From Page: A4

Check out the night sky

By Enterprise staff | From Page: A5 | Gallery

 
Hop to it: Easter Bunny meets Davis history tour

By Enterprise staff | From Page: A5

Garden doctor: Veggie gardening available year-round

By Special to The Enterprise | From Page: A5

 
Animal expert explains dogs’ thinking

By Special to The Enterprise | From Page: A5

Central Park Gardens to host Volunteer Orientation Day

By Enterprise staff | From Page: A7 | Gallery

 
 
.

Forum

Still supporting this guy

By Special to The Enterprise | From Page: B5

 
Urban forest under siege

By Special to The Enterprise | From Page: A6, 4 Comments

Drought care for our trees

By Letters to the Editor | From Page: A6, 1 Comment

 
Tom Meyer cartoon

By Debbie Davis | From Page: A6

.

Sports

UCD staff allows 19 hits in Causeway rout

By Bruce Gallaudet | From Page: B1 | Gallery

 
DHS softball struggles in nonleague outing

By Spencer Ault | From Page: B1 | Gallery

Devils open Boras Classic by splitting games

By Enterprise staff | From Page: B1 | Gallery

 
 
JV/frosh roundup: DHS sweeps a trio of baseball games

By Enterprise staff | From Page: B2 | Gallery

Baseball roundup: River Cats get by Grizzlies at Raley

By The Associated Press | From Page: B3

 
Giants beat L.A. in 12

By The Associated Press | From Page: B3

Sports briefs: Stanford sends Aggies home with a lacrosse loss

By Enterprise staff | From Page: B8 | Gallery

 
.

Features

 
.

Arts

Red Union Blue inks record deal

By Landon Christensen | From Page: A9 | Gallery

 
Craft Center exhibit explores ‘Possibilities’

By Special to The Enterprise | From Page: A9

RootStock to host wine themed plein aire exhibit

By Enterprise staff | From Page: A9

 
The California Honeydrops to bring danceable groove to The Palms

By Enterprise staff | From Page: A9 | Gallery

See Flower Power exhibit at Gallery 625

By Enterprise staff | From Page: A9 | Gallery

 
.

Business

.

Obituaries

.

Comics

Comics: Wednesday, April 16, 2014

By Creator | From Page: B6