In a sign of what may be in store for the post-war equity markets, the Nikkei fell below 8,000 today. With worries about Sars rising, Europe full of euro-related low groth problems, and the US job and profitability situation all focusing attention, it's hard to see a strong rally any time sooon. God, I can still remember that it was only March last year that we were all saying 10,000 would be a tipping point. Now it's down to 8,000 and heading South. Still, there will be a tipping point in there somewhere, the difficulty is only in identifying it.
The benchmark Nikkei average fell below the key 8,000-level in midday trade on Thursday, on continuing fears regarding the state of the global economy in the wake of the Iraq war.The benchmark Nikkei 225 fell 1.4 per cent to 7,941.96, while the broader Topix index was down 1.3 per cent to 790.76.Stocks were broadly lower, with Sony hitting a four-year low in intraday trade, on concern that Japan’s biggest exporters may feel the effects of a global economic slowdown following the Iraq war. Sony’s shares were down 3 per cent to Y3,900 in midday trade, a level last seen in January 1999. Downward pressures on blue chips. were exacerbated by corporate pension fund selling.
Source: Financial Times
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