The Global Financial Markets Are Selling Off


Stocks, bonds, and commodities around the world are getting hit by a double-whammy.

First, Fed Chairman Ben Bernanke suggested that strengthening economic data could all the Fed to start tapering, or gradually reducing, its stimulative bond-buying plan. This seemed to be behind a bond market sell-off.

Second, China reported that manufacturing activity was decelerating at a higher clip than expected in June.  China is the world’s second largest economy and it is also a key source of global economic growth. As such it is also one of the big consumers of commodities.

All of this slammed markets in Asia.

  • Japan’s Nikkei closed down 1.7%.
  • Hong Kong’s Hang Seng closed down 2.6%.
  • Australia’s S&P/ASX closed down 2.1%.

And now Europe is getting pummelled.

  • England’s FTSE is down 1.4%.
  • France’s CAC 40 is down 1.6%.
  • Germany’s DAX is down 1.8%.
  • Spain’s IBEX is down 1.3%.
  • Italy’s FTSE MIB is down 0.9%.

And the U.S. markets, where the sell-off began, hasn’t finished tumbling.  Dow futures are down by 50 points.

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