World Clock

Wednesday, 16 March 2011

Nikkei to Remain Closed Citing Volatility: Reuters Reports

(Reuters) - Some foreign financial institutions are calling for Japan's stock market to halt trading, while the Tokyo Stock Exchange and Japanese financial regulators are planning to keep markets open, news agency Nikkei reported.

The report said that foreign firms were looking for a trading halt because the "market was experiencing too much volatility," but did not elaborate.

The scale of volatility can be seen clearly in this three day chart of the Nikkei 225. 

US equity market have also experienced a surge in volatility over the same three day period. The chart below shows a massive 40% spike in the VIX volatility index - better know as the fear gauge for Wall Street

The currency market also seen extreme volatility, especially in the last several hours as the FT reports.

"The yen breached its record high from April 1995 of Y79.70 versus the dollar as traders continue to bet that the Japanese unit is likely to see buying from the repatriation of funds. The yen’s gains accelerated once the previous high was broken, and surged within minutes to Y76.36. Traders were seemingly not worried by the threat of Japanese currency intervention."

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