This is a bloodbath of biblical proportions if you look at what's happening in Asia. While the PSEi down 1.39%, the Shanghai composite is down 2.60%, the Hang Seng down 2.11%, Nikkei down 1.78%, Jakarta down 1.33%, Singapore down% height, KOSPI down 1.76%, Taiwan down 1.87. Europe also open with different degrees of balance of sale, all of this because Maumar Khadafy decide to shoot down protesters were President of Libya.
Implications reach it since the big picture is the fermentation of the Middle East and Africa North that make up the many OPEC countries. Contracts-West Texas intermediate oil for delivery in March-shot 7.44% overnight. With inflation originating from agricultural goods already having extremely large price spikes, the last thing the world needs is interrupted the flow of oil OPEC may cause very high fuel prices down the road.
Implication for the market's liquidity is if the world is being used to finance all kinds of goods, money into financial assets have contracted. Initial emotion looks like fuel be poured into inflationary psychology, I think it is bad for markets. Some already saw inflation be the enemy but it is only now beginning to look like a formidable task.
22 February 2011-posted by Gus Cosio | Financial markets are in Asia be first as this time.
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