June 30th, 2010
02:48 AM GMT
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(CNN) – Asian markets opened lower after the Dow dropped 268 points and the S&P hit an eighth-month low, following similar tumbles in Europe.

It doesn’t augur well for the start of what some claim is the year’s most important trading day.

Several factors have sent global markets down in the past 24 hours: weak economic data from Japan, including a rise in unemployment; softening consumer confidence in the U.S.; and a report that suggests the white-hot Chinese economy is cooling. London's FTSE and Frankfurt's Xetra Dax both closed down more than 3 percent Tuesday. The Paris CAC 40 closed down more than 4 percent.

There’s also new concern over European banks which are due to repay part of a $540 billion loan to the central bank on Thursday.

“It’s almost a butterfly effect,” Savanth Sebastian, equities economist with Commonwealth Bank, told CNN’s Colleen McEdwards. “This host of negative data is certainly taking its toll.”

It’s a tough run-up for today, June 30 – end of the first half of the year, and a day that some say presages how the market will finish the year. “Historically the way the market finishes tomorrow is the way we finish the year,” Alan Valdes of DME Securities told CNN’s Alison Kosik in New York on Tuesday. “If we finish tomorrow on the down, we could be in for a tough year ahead.”

Sebastian points out that there is double-digit growth for a lot of Asian countries; the weaker euro has improved exports out of Germany and that despite the ups and downs the United States is still in recovery.

Still, if the past is any indication, stock performance at the end of the first half will set the tone for the next six months. Markets across Asia opened down: At 10 a.m. Hong Kong time, the Tokyo’s Nikkei 225 was down 2.13 percent, Hong Kong’s Hang Seng Index down 1.27 percent, and S&P/ASX 200 index in Sydney was down 1.77 percent.



soundoff (22 Responses)
  1. Scott

    Articles like this are why nobody trusts the stock market. it's just a bunch of retarded assumptions made by people who are knowledgeable about the market but not knowledgeable enough to just make big bucks.

    June 30, 2010 at 5:44 am |
  2. Martin

    Of course, this is nonsense. Many of these markets opened down because they were reflecting US hysteria, but by lunchtime almost all of them had headed back up. We have yet to see what happens at the end of the day. And some money has left the Hong Kong market because people want to divert it into a new major public offering of ABC. Hardly the debacle you are touting here.

    June 30, 2010 at 5:51 am |
  3. Fred

    why don't we get rid of these markets and we will be stress free,,,wall street its controlled by private firms, so we should just close these markets,

    June 30, 2010 at 6:06 am |
  4. Martin

    ABC, by the way, is Agricultural Bank of China (1288)

    June 30, 2010 at 6:13 am |
  5. Fred

    The consensus out there, is that markets trend lower on bad news. Conversely, market upticks generally follow good news. In support of this theory, follow the markets from a historical perspective, by reading any of yesterday's newspapers.

    June 30, 2010 at 6:18 am |
  6. ken

    The Chiese economy is not so good as original thought. His stock has to drop when USA impact on.

    June 30, 2010 at 6:22 am |
  7. David

    This article is worthless and doesn't belong on a serious news site. What happens on June 30th has no bearing on what happens between July and December.

    Last year, the market was basically flat on June 30th, but increased significantly between July 1st and December 31st.
    The year before that, the S&P 500 closed up 2 points on June 30th, but fell nearly 30% between July 1st and December 31st. If you were to make predictions based on closing prices on June 30th 2008, you would have predicted no market crash at all, and gradual increases through the rest of the year.

    In other words, you would have been very, very wrong.

    June 30, 2010 at 6:33 am |
  8. eggz

    never the less we should panic. PANIIIIIIIIIIIC!

    June 30, 2010 at 6:42 am |
  9. David

    Is there a job opening for depressed looking white guys holding their head, expressing dismay, posing around computer monitors or holding telephone headsets? Or does CNN have an entire portfolio full of stock photos containing such images? Whatever the case may be, it's shameless psychological manipulation. Just like religion, tabloid journalism thrives on fear, uncertainty, and doubt. Thanks, CNN, for injecting pessimism and fear into an apparatus that thrives on optimism.

    June 30, 2010 at 6:50 am |
  10. Phillip Bell

    The "experts" with their crystal balls are at it again. Historically, this has trended in the past, therefore it will definitely do that again this year?

    Are these the same people that invented Groundhog day? The groundhog sees it's shadow, so six more weeks of winter.

    June 30, 2010 at 6:58 am |
  11. Pat

    Maybe I'm just one of the lucky few, but so far this whole stock market crash/great recession thingy hasn't affected my lifestyle at all. I have never invested in financial products, only in real estate that 's rented out, and live a rather simple but comfortable life, no fancy garbage that is absolutely useless. Maybe if all these idiots working in the financial sector & the others trying to make easy money off it all got "real" jobs the world might be a better place with less stress and a better economy based on the manufacture of real goods, not virtual riches.

    June 30, 2010 at 7:48 am |
  12. Suleman

    No matter how much they fake it or keep it under cover, the recession that started in 2007 has only worsened & it wont stop, the collapse of the Capitalist system is on the cards & there is a Domino effect in every country which has embraced Capitalism.

    June 30, 2010 at 8:26 am |
  13. Cilette

    It's a blessing that the Philippine stock market was closed today for the inauguration of President Aquino. If not, we may well have suffered a big loss like other Asian markets. Hopefully, the Dow recovers overnight to give local stocks room to react positively to the peaceful transition of power and appreciate the strong economic team that the new President has appointed.

    June 30, 2010 at 8:48 am |
  14. Martin

    The other Asian markets did NOT "suffer a big loss".

    Most either held steady or dropped less than 1%. Most were picking up towards the end of the day.

    The only exception was the Nikkei. Japan Nikkei was down 195 at 225 9,376. Taiwan weighted just 99 at 7,325, KOSPI lost just 17 points and the Thai markets were (barely) up. Meanwhile HK is waiting eagerly for a huge IPO.

    So, if June 30th is representative of anything it may be the doldrums, but not a huge drop.

    And some people were unduly influenced by "Chicken Little". As for those who say, we shouldn't have shares or stock markets, who do you think will finance industrial development then ? Sometimes it's useful to learn what a stock or share is before commenting on what an evil they are.

    June 30, 2010 at 9:18 am |
  15. ConcernCitizen

    It is expected that the economy will slow when the EU PIIGS are killing the Europe confidence. Now, China is slowing down, but still growing like no tomorrow. Other parts or Asia, S.America are still contributing to the growth. There is no need to worry if you have the confident and esteen. Unless you totally have no confident in your own country's economy and your own job. Don't blame the reporters for writing, they are doing their jobs just like you.

    June 30, 2010 at 10:15 am |
  16. Martin

    I know the desperate search for an "angle" from inside. It doesn't always make it ideal journalism.

    June 30, 2010 at 10:46 am |
  17. StockJunky

    There is a difference between reporting news/facts and commentary. This article falls under the category of commentary, which isn't bad, but it should be clear this is someones opinion and not facts.

    The first comment is correct in saying this is why nobody trust the stock market. In reality, professional brokers are pretty good about separating facts from commentary, however the public isn't. With online trading the public and these types of commentary are not helping the market at all.

    June 30, 2010 at 11:37 am |
  18. William

    Today I bought $1 million in COCA COLA STOCKS!!!!

    June 30, 2010 at 2:15 pm |
  19. Helen

    Following on from what David says below about CNN imagery, why does CNN persist on using as its 'commercial video' a clip from the cnn website from 2 years ago focused on the bear market. This appears to be very sloppy advertising for an organization of CNNs calibre.

    June 30, 2010 at 2:52 pm |
  20. Alex

    Sure, keep on playing roulette on the market. If we haven´t learned anything from the 2008 fiasco, then only hunger will teach us a lesson (a hard one by the way). We as humans have been there, yet the newer generations seem to have a blind eye about the subject. "When ignorance reigns, life is lost" RATM

    June 30, 2010 at 3:34 pm |
  21. lisaweyn

    Wallstreet brought fortune and fame. Now we must forgive for the mistakes they made and lookforward to the future.

    June 30, 2010 at 11:35 pm |
  22. Camb

    Stock market is a noble way of pickpocketing.

    July 1, 2010 at 6:24 am |

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