Global Markets Lose Momentum Following Geopolitical Concerns

Global markets have witnessed a volatile week following geopolitical concerns including airstrikes by the US and its allies in the Middle East. The Dow, Nasdaq, and S&P 500 began the week in red, overshadowing Alibaba’s debut and stronger than expected Chinese PMI of 50.2. US stocks picked up from where they left off in the red at the beginning of the week, dropping for three consecutive days. Weak European economic data also weighed on the global markets with Asian markets taking cue from Wall Street. By Tuesday, the Dow shed 117 points to 17,056 while the S&P 500 which crossed the 2000 mark a week ago fell 0.58 percent, to 1,983. The Nasdaq also dipped 19 points following hectic selling, closing at 4,509 on Tuesday.

Wall St Financial Markets

Alibaba on the Move

Alibaba Group Holding Ltd (NYSE: BABA) which debuted last Friday opened at $68. The Chinese ecommerce giant opened 36 percent above its IPO price at $92.70 and raced to a high of $99.70 within the first ten minutes of trading. At the closing bell of Alibaba’s debut, its shares were up 1.2 percent from its opening to $93.89, signaling a 38 percent gain for investors. It remained the most watched stock and had an impact on the Nikkei225 at the beginning of the week as investors booked profits on SoftBank, a 32 percent stakeholder in Alibaba. SoftBank shares dropped 4.5 percent, dragging the benchmark 0.5 percent lower to 16,236.60.

US Dollar Finds Support as Yen Weakens

The US dollar lost some ground against the yen midweek after Japanese Prime Minister Shinzo Abe’s remarks about a weakening yen. The dollar USD/JPY was at 108.52 after touching 108.89 on Tuesday in New York. Abe’s comments came following the yen’s slide to a six year low of 109.46 yen at the end of the last trading week. The greenback hovered around a 4-year high against a basket of major currencies. The EUR/USD was last up at $1.2856 from $1.2847 while the single currency lost some 0.22% to the yen with the EUR/JPY at 139.51 from 139.88 yen. The WSJ Dollar Index BUXX shed 0.16% to 76.82.

Binary Options Tip

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