Fear Hits Japanese Banks, Nikkei Plunges, 10-Year Yield Negative for First Time Ever…”A banking crisis radiating out from Europe?”
by Wolf Richter
WolfStreet.com
February 9, 2016
While China, Hong Kong, and some other Asian markets celebrated the lunar New Year and wisely kept their markets closed, all heck is breaking loose in Japan.
The Nikkei had risen 1% on Monday and was down “only” 18.8% from its recent high in June 2015, thus dodging not only the rout of most other markets that day but also the ignominious fate of being pushed, like so many other markets, below the blue line in my infamous Global Bear-Market Progress Report. The blue line indicates a decline of 20% or more. But that was like so yesterday.
Today, the Nikkei plunged 919 points or 5.4%. It’s now down 23.1% from its recent high, in a solid bear market. Fears about global growth coagulated with fears about a banking crisis radiating out from Europe, and particularly its epicenter, Deutsche Bank.
So Japan’s four systemically important megabanks that will not be allowed to implode if at all possible got totally smoked today, and have gotten crushed since their highs last year:
The Rest…HERE
