Wednesday, 20 July 2011

Nikkei opens 4pc lower on fears of "nuclear disaster" Japan

Markets have been at the Bank of the Japan, to intervene as a yen very poorly exporters of the country, potentially deepening damage already serious Japan by multiple disasters.

"It intensified speculation of the Bank of the Japan markets will soon intervene to limit their support of the yen," said analyst NAB Capital David de Garis.

US officials in Washington warned that the plant in Fukushima Dai-ichi can be on the point of spewing more radioactive, as Japanese military helicopters continued to dump water on a stricken reactor to try to avoid that a complete breakdown. They said the Americans to remain at least 50 kilometres of the plant.

"Foreign investors continued to dump stocks on growing fears about nuclear accidents." Also, investors are worried that the earthquake and the nuclear disaster certainly could dent economic growth, "said Masatoshi Sato, a market analyst at Mizuho investors securities."

Main landmarks across Asia were also lower. Hong Kong Hang Seng index lost 2pc, of Shanghai Composite Index slid 1. 2pc, Australia of the ASX dipped 0. 1pc, and the India Sensex fell 0. 4pc.

ABN Korea of southern edged up to 0 1pc.

The Central Bank of the Japan injected cash in on the currency markets of Tokyo for three days in a row, an injection of total liquidity 55.6 billion yen (£ 430bn) since Monday.

On Wednesday, the Dow Jones fell 242.12 points-2. 04pc - close to 11613.3, frightened by the fear of nuclear catastrophe. The biggest fallers were IBM (-3.1 8pc), General Electric (-3.1 3pc) and Boeing (-3pc). Business electric and energy were hard these days that the benefits of the Japanese earhtquake and tsunami continues to disrupt supply and grid lines in the country of power.

The & S P 500 fell by 1. 95pc and the technology-rich Nasdaq Composite slid 1. 89pc.

The U.S. index followed the FTSE 100. Despite the British blue-chips opening day until slightly, they fell 1. FP7 - or 97.05 points - a minimum of three months expenses of 5598.23 on Wednesday. France of lost 2 23pc ACC and Frankfurt's DAX fell 2 01pc.

Angus Campbell, head of sales at Capital spreads, said: "investors have received another scare after the Commissioner of the EU energy today announced that the situation there was achieved out of control." Are the vendors because on the market and at one point, that the future Nikkei fell to three hundred points within ten minutes. »

Markets had been agitated throughout the day of the crisis in the power plant nuclear Fukushima damaged by the earthquake in the Japan has intensified.

Guenther Oettinger, Minister of energy of the European Union, said the European Parliament: "In the next few hours it could be more catastrophic events, which could pose a threat to the life of the inhabitants of the island."

He said the nuclear site is "effectively out of control:"cooling systems have not worked, and as a result, we are somewhere between a disaster and a major disaster.""

Feeling the market was still blocked by the increase in the price of oil following clashes in Bahrain, downgrade of a Moody of the debt of the Portugal and the United States poor economic data showing wholesale pricing pressures greater than expected and the recession in construction to a low near record housing.


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