Triple Digit Decline on DOW Spill-over Across the Board

The first signal of a neutral to negative outlook spilled over from the Asian & European markets over the week have somehow gained traction with US investors complacency of a mere 18% chance that the US FEDERAL RESERVE BANK would raise rates after the previous & disappointing #JOBs number.

US Lackluster trading resulted in the decline of major indices, exacerbated by Boston #FED President Eric Rosengren statements boosting the issue on raising interest rates. The #Dow Jones nearly made a 2% decline equivalent to over a 400 pts, while the #NASDAQ did a 2% drop with WTC Oil prices lower to the USD46.00 handle added to the selling pressure. Meanwhile, the FTSE & CAC 40 likewise dropped 1.26 and 1.12 percentage points respectively.

As Bond yields are the driving force for the major currency movements; where we can see that the 10 year German bund yield rallied after ECB President Mario Draghi's comments. Thus resulting to the US yields open sharply higher with 10 year yield at 1.674% in comparison to the previous day's close
at 1.616 as of to-date.

The markets across the board were in the red from stocks, indices, while commodity currency markets such as the AUSSIE Dollar suffered much due to risk aversion after realzing what the market was doing. Although, the #USD price recovery was so far outperformed the rest of the currency pairs for the week; again gaining ground above the 95.05 by closing at 95.35; yet still lower from the rpevious weeks closing at 96.00 levels.

Needless to say, the European majors met a bumpy road on their way to a price recovery due to the negative sentiments of the market across the board. That saw the #EURO & #CABLE back to 1.1230 & 1.3260 corrective levels after making recovery @1.1326 & @1.3445 respective highs at the middle of the week's trading activity.

Let us see how this market secenario plays out, specailly for stocks and the USD as investors digest and assess for how long the Fed's statements can hold through out the coming weeks. Take note that the end of the 3rd quarter is around the corner, and its certain that alteranting position adjustments would take place while waiting for price action to remain with increase volatility at the last trading quarter of 2016.

The question is....What would Asian main-street and other investor / traders do whenever such triple declines are made in the US major markets? Especially so if a holiday weekend extends on a Monday while trading continues in the rest of Asia, the US and the European markets. This is where knowing the 'time difference & strategies can be applied" whenever such events happens. Please refer to previous article and information shared on this matter.

Reference Info: Attention: Asian & US-PH Investor / Traders