Markets remain stressed by China’s energy shortage and record-breaking gas and coal prices. With markets closed in China, Japan is collapsing. Wall Street is also sliding.
Markets Today : Asian equities follow Wall Street sharply lower and bonds rally.
Risk appetite has escalated amid growing fears that inflation may persist, driven by record energy prices.
The actions collapse in Japan and Australia, and an indicator of the Asian indices fell to its lowest in more than a month. China is closed for a week due to public holidays and the Hong Kong market is closed today.
The S&P 500 closed the night, marking its lowest level since July and extending its September losses to nearly 5%.
In this context, the markets today remain quite nervous, with the focus on China desperate for energy to avert the production stoppage.
Loss Markets: Energy Chaos Impacts Equities
With China and Hong Kong closed, the spotlight is on Japan first and foremost. At around 8.30, the Nikkei plunged 2.31%. Also in negative territory are Taiwan (-2.15%) and the Kospi of South Korea (-1.6%).
The Japanese collapse reflects all the concerns of the moment: inflation on the run and persistently; energy crisis with gas shortages which, meanwhile, are recording record prices; increase in Treasury yields; difficulties in the US to refinance the federal government.
The Nikkei Index has approached last month’s lows and could lose 4.6% in a week. The threat of the ballistic missile launched by North Korea is also weighing on Japanese sentiment.
Meanwhile, overnight in the US , the Dow Jones Industrial Average fell 546.80 points to 33,843.92 while the S&P 500 lost 1.19% to 4,307.54. The Nasdaq Composite slipped 0.44% to 14,448.58.
China in search of energy is shaking the markets
The dragon remains the protagonist of the markets at this time. The China needs more gas and coal to avoid further blackouts and Vice Premier Han Zheng urged companies to do everything to not close again industries and factories.
Pressed by energy shortages and strict standards against polluting emissions, the Chinese nation is in search of gas and coal. Meanwhile, the two resources record record prices, sending Europe into a tailspin.