Apparent concerns about the resurfacing debt crisis in the Euro zone, related to the Indecisive election results in Italy saw a impact on the Asian shares, as they plunged on Tuesday, following the trends of the overnight fall in global equities. After counting almost all the votes, the Interior Ministry declared on Tuesday that with the upper house remaining deadlocked, the lower house will see a majority based win of Italy’s centre-left coalition. The majority of seats in the Senate have not been won by the coalition or any party, which is required for the legislation to be passed. This uncertainty is also the point of focus for traders and investors worldwide.
Market strategists state that traders are at crossroads as they wonder if the election proved to be a reason or pretext for the market movements. Observing the movements in the commodities market, one can see upward trends in gold and copper in London. With reference to other major players in the currency market, overall losses for equities in Asia were controlled.The Standard & Poor’s 500 Index .SPX, highlighted as the benchmark in U.S. witnessed sharp decline as single day percentage since the time of November 7, with a value of 1.8% tumble on Monday.
Monday also saw the retrace of the yen, with nervous reactions regarding news in Italy. The yen was also lower by 0.5% with reference to the euro at a value of 120.87 after moving ahead more than 3% to a value of 118.74 on Monday from its low position of the day at 125.36. The yen was also lower by 0.6% with respect to the dollar at 92.35 after increasing 2% to a high position of 90.85 seen over three weeks, on Monday from its low position of 94.77 reached previously in the day, from its lowest since May 2010.
The fall in the trends of the dollar and the euro with reference to the yen was seen by traders as new opportunities for purchasing the currencies with reference to the yen.