Asian Marts Falling Apart in Early Trading
The beat goes on in early Asian trading, with the blame being squarely placed on U.S. subprime issues and an election surprise in Japan:
"`The U.S. subprime loan problem is leading investors to switch from equities to bonds,'' said Norihiro Fujito, strategist at Mitsubishi UFJ Securities Co. in Tokyo. ``The election turned out to be more negative than had been expected.''
The Nikkei 225 Stock Average slumped 179.99, or 1 percent, to 17,103.82 as of 9:12 a.m. in Tokyo. The broader Topix index dropped 19.32, or 1.1 percent, to 1680.39. Both indexes fell for a fourth day, the longest losing streak since May 18. Bloomberg
The night is yet young, but if Asia does not turn around by the time Entourage is off the air most of the East Coast will be tucking into bed dreading another day in the office.
But not all the international news is quite so dire. Deutsche Bank apparently is on the right side of a big trade...
...Germany’s largest bank is poised to reap a bonanza of at least $270 million and as much as $540 million from a strategy that enabled its traders to sell subprime mortgage loans with derivatives contracts that appreciated as the U.S. housing market suffered its worst slump in 16 years. Bloomberg
Good news, no doubt, in a sea of red.
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