Here’s the picture after yesterday’s mini-beating.
Asia ended sharply lower:
WSJ: The Nikkei 225 was down 1.5%, Australia’s S&P/ASX 200 was down 0.9%, South Korea’s Kospi Composite was off 0.3%. The Shanghai Composite index was 1.6% lower and Hong Kong’s Hang Seng Index was down 0.7%, while shares in Taiwan bucked the region and were up 0.1%. Dow Jones industrial average futures were 22 points higher in screen trade.
Shares in China were being led lower by banks on concerns of capital raising leading to massive stock supply.
We actually wouldn’t put too much stock in the bank capital raising explanation. That’s basically become the default explanation for down move there.
Europe, meanwhile, is headed lower as well, with the STOXX down 0.4% and the FTSE 100 down 0.2%. Given the tremors out of Greece, this isn’t particularly bad.
And gold, which is now going on several days without showing much strength at all, is clawing back a tiny amount, though it remains well below where it was just a few days ago.