Wednesday, January 18, 2006

Tokyo stock market crashing! Other markets being affected.

Tokyo's main stock exchange crashed!

It was shutdown 20 minutes early due to capacity reasons. The stock exchange's early closure is causing widespread speculation throughout the world that tomorrow's session will be worst. The increased sell-off trading was due to an Enron-like scandal involving Livedoor, a major Internet services company in Asia (our Yahoo! in the U.S.). Livedoor was raided late Monday by government officials on allegations the company violated securities and exchange laws.

According to MarketWatch, the U.S. market could follow the downtrend in the coming days. BBC News has already reported that Tokyo's crash has already affected Europe. Specifically, London, Paris, and Frankfurt markets. Additionally, oil prices have been affected, raising the price per barrel range to $66, largely due to the negative speculation regarding the Tokyo market crash and Iran/Nigeria.

No comments: