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Current Futures: Dow -45.00, S&P -4.30, NASDAQ -7.25
Asian markets declined even from the first few minutes of trading, following poor macroeconomic data released on Friday. U.S. futures also traded in the red tonight, suggesting that the financial markets are in risk-aversion mode again.
On Friday, a released showed that the German and the Euro-area economies contracted more than expected in the first quarter. The preliminary GDP numbers pointed out that the German economy contracted a whopping 3.8% in the first quarter, the most on record, while the Euro-area economy shrunk by 2.5%, the most in the last 13-years. The biggest negative impact came from the trade balance, which took out some valuable points from the quarterly GDP as international trade has collapsed in the last two quarters.
During tonight’s Asian session, most shares that have exposure to the European or to the North American markets fell, as investors anticipate that the economy will recover slowly. The most effected were the electronic manufacturers, like Canon, Panasonic or Sony, which have important market shares in the two regions. Despite this, the car manufacturing industry traded near the break-even line, as it seems the merger talks between VW and Porsche are coming to a standstill.
Overnight, the Japanese Nikkei fell 228.56 points (2.47%) to 9,036.46. The Australian S&P/Asx declined 39.80 points (1.05%) to 3,733.40.
Crude oil for June delivery was recently trading at $56.40 per barrel, higher by $0.10.
Gold for June delivery was recently trading lower by $1.30 to $930.10.
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