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Minyanville's Before The Bell: Asian Markets Tumble Again, Stock Futures Down


Asia Tumbles, Yen surges, futures down!

Stock futures are down as we see another wave of selling overseas this morning. As of 8:05 AM EST, S&P futures are down 8.30 points at 1416, Nasdaq futures are down 6.2 points at 1850.

Asian markets were hit hard especially in Japan. The Nikkei 225 ended down 5.42%, Hang Seng was down 1.38%, Shanghai Composite was down 2.28%, and the Kospi closed down 3.19%.

Australia's central bank bought the nation's currency for the first time in six years to curb the largest drop in its currency since 1983. The Reserve Bank of Australia and the Bank of Japan also continued to add funds to their markets.

European markets are in negative territory. The CAC is down 0.35%, DAX is down 0.57%, and the FTSE is trading down 0.34%.

The Yen continued its rally as investors continued to unwind the carry trade. At one point the yen surged as high as 111.61 against the dollar, the highest in 13 months. Japanese exporters were largely affected with Toyota (TM) sliding 7.2% and Honda (HMC) falling 8.2%. Please read Professor Bloudek's The Duration Carry Trader for more on the effects of the unwinding of the carry trade.

Oil is higher $0.78 at $71.78 this morning as traders are cautiously watching Hurricane Dean in the Gulf of Mexico.

On the radar today, Michigan Sentiment – preliminary is scheduled to be released at 10:00 AM EST with the consensus figure being 88.5.

Taking a look at some individual headlines, Dell (DELL) said it would restate over four years of results after a probe found executives took improper actions to hit quarterly goals. The shares are up 1.35% in the premarket. Read Professor Adami's Dell's Long And Winding Road for more specifics on this company.

Whole Foods (WFMI) and Wild Oats (OATS) won a small victory as a judge refused rejected the Federal Trade Commission's plea to temporarily block the merger.

Don't be deceived by the light radar today. Today is expiration Friday so we should continue to see volatility as it has been all week. Please continue to look through our Risky Business package and Toddo's Random Thoughts in preparation for today's trading session. And ss always for more stock-specific ideas, please look at our Stocks to Watch. Good luck Minyans!
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No positions in stocks mentioned.

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