Morning Markets: Asian contagion set to rattle Europe
- Germany: ZEW Economic Sentiment Indicators (0900 GMT)
- US: New Home Sales (1400 GMT)
- US: Richmond Fed Manufacturing Index (1400 GMT)
- The rising yen weighed on share investor sentiment in Tokyo
- The Nikkei 225 was down by a sharp 0.73% to 16,532.24 at 0445 GMT
- China's Shanghai Composite was down by 0.89% to 2,818.42 at 0507 GMT
- Hong Kong's Hang Seng was down 0.32% to 19,745.01 at 0513 GMT
- Korea's Kospi Composite was down 0.61% to 1,943.36 at 0451 GMT
- India's S&P BSE Sensex was up by a modest 0.07% to 25,247.07 at 0510 GMT
- Australian sharemarket followed the lead in regional markets and headed lower
- The S&P/ASX200 closed down 0.26% at 5,304.90
- Iron ore to in China tumbled 5.4% to just $52.70/tonne
- Iron ore futures suggest the price could fall as low as $50/tonne later today
- Top miners BHP Billiton and Rio Tinto defied the ore price gloom with share price gains
- Comments from RBA Governor Glenn Stevens impacted the Australian dollar
- The US dollar fell nearly 1% against the yen on Monday but was stable against the euro
- The US dollar was worth just ¥109.3140 at 0514 GMT
- The Aussie dollar fell on comments from the RBA governor and the iron ore price fall
- The Aussie dollar was worth just 0.7197 at 0513GMT
From the Floor
Japan’s marker. “Aso defined a ‘disorderly’ market as a five-yen move in two days and that could lead to intervention,” says Moltke-Leth.
European banks. ”It’s a disastrous industry at the moment,” says Garnry.
Get all the latest from Saxo Bank's trading floors in From the Floor, within the hour.
The Germans seem to believe that economic confidence is returning, which may turn out to be a self-fulfilling prophecy, says James Picerno.
There have been more bullish speeches from the Fed favouring two rate hikes this year, writes the team at Saxo APAC Sales Trading.
Hedge funds increased commodity bets by 3% to 1.15 million lots, a two-year high, during the week ending May 17. Net buying was seen across all sectors apart from metals due to a second week of aggressive copper selling, reports Ole Hansen.