Stocks Pounded Overnight

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It looks like American and world stock markets are in something of a spiral, feeding off each other to the downside as the month-long rally screeches to a halt. After US indices fell by some 3% on Monday, Asian stocks returned the favour.

AP: Early in Europe, Britain’s FTSE 100 fell 0.3 per cent, Germany’s DAX shed 0.1 per cent and France’s CAC 40 lost 0.5 per cent. Stock futures pointed to modest gains Tuesday on Wall Street. Dow futures rose 13 points, or 0.2 per cent, to 8,296 and S&P futures gained 0.6, or 0.1 per cent, to 889.20.

In Asia, Japan’s Nikkei 225 stock average lost 276.66, or 2.8 per cent, to 9,549.61 while Hong Kong’s Hang Seng shed 521.19, or 2.9 per cent, to 17,538.36.

South Korea’s Kospi lost 2.8 per cent, Australia’s index was off 3.1 per cent and Taiwan’s benchmark dropped 2.3 per cent. Shanghai’s main stock measure traded lower by 0.1 per cent. India’s Sensex lost 1.2 per cent.

As evidence of nervousness over the economy itself, there’s been a sharp turnaround in commodities and the companies related to them.

Today we’re on alert for action in the bank stocks, which after weeks of being very quiet, started to break lower yesterday along with the market.

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