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Thread: NIKKEI 225 down almost 8% today

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    Politics.ie Member Dan_Murphy's Avatar
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    Default NIKKEI 225 down almost 8% today

    Hey folks.

    The NIKKEI 225 is the Japanese Stock market, and it has seen massive gains in comparison to the Dow or the NASDAQ in recent months.



    However, in the past few hours the exchange has lost 7% of its opening value.

    I won't pretend to know much about the Japanese but I do know they have recently announceD a massive QE program, pumping about 70 billion a month into the economy in an attempt to stop deflation. Could we see the QE they have announced be consumed by an attempt to prop up the stock market, are we watching a bubble burst in the market, is it mere a small correction, and how does this affect the rest of the world? If Japan is blaming the weakening output of Chinese factories, then wouldn't it stand to reason that we would see the same thing happen in the US and Europe?

    I would be most interested to hear from those of you in the know about markets and such things.

    Also, does anyone know where I can get some Squirrels fast?
    Last edited by Dan_Murphy; 23rd May 2013 at 01:28 PM.

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    Politics.ie Member Howya's Avatar
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    There has been such a run up in the Nikkei that any bit of bad news was bound to lead to a dip. High frequency trading and black box algorithms are also likely to have had an impact on the significant selling.
    “Still paying, still to owe. Eternal woe! ” ― Paradise Lost, John Milton

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    Japan is totally fckd,

    Google Kyle Bass, he'll explain it to ye,


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    Politics.ie Member Dan_Murphy's Avatar
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    Quote Originally Posted by Howya View Post
    There has been such a run up in the Nikkei that any bit of bad news was bound to lead to a dip. High frequency trading and black box algorithms are also likely to have had an impact on the significant selling.
    No doubt.

    I'm inclined to think its going to be rough day for Japanese traders tomorrow, probably see more falls. Apparently the circuit breakers were hit and trading stopped temporarily today, we might see the same thing again?

    Even with the drop today, its see a 72% gain since this time last year.

    NKY Quote - Nikkei 225 Index - Bloomberg

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    Quote Originally Posted by Ribeye View Post
    Japan is totally fckd,

    Google Kyle Bass, he'll explain it to ye,

    Ya could have found a red squirrel. Those grey ones keep nickin me nuts.

  6. #6

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    That's the anticipated effect of braindead QE.

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    Politics.ie Member Dan_Murphy's Avatar
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    Quote Originally Posted by YouKnowWhatIMeanLike View Post
    That's the anticipated effect of braindead QE.
    Japans announcement of QE was only in recent weeks though. Unless its money from the US and EU pumping into Japan I don't think thats caused it.

    Wouldn't the money recently announced cause the index to rise if anything?

  8. #8

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    Quote Originally Posted by Dan_Murphy View Post
    Japans announcement of QE was only in recent weeks though. Unless its money from the US and EU pumping into Japan I don't think thats caused it.

    Wouldn't the money recently announced cause the index to rise if anything?
    not if the market looks beyond the initial effect. market players pull cash to convert it into other financial instruments such as inflation adjusted indexed-bonds

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    Process Loop:

    Banks lose lots of money - seek bailouts.

    Central Banks indebt their citizens - give money to banks

    Banks invest bailouts in stock market instead of resolving debts. Markets rise.

    Bankers trouser commissions - sales of Porches rise

    Bankers overdo it and lose lots of money - seek bailouts

    Repeat.

    Classic rinse.
    "Changing Mr Cowen will not change the culture that bred this puss-filled carbuncle of iniquity" Bruce Arnold

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