Stocks, Oil, Gold Falling as Japanese Index Plummets 1,000 Points
- Posted on March 15, 2011 at 9:52am by
Jonathon M. Seidl
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Stocks are headed for a sharply lower opening Tuesday, and bond prices are rising, as the nuclear crisis in Japan intensifies following a deadly earthquake and tsunami. But commodities such as oil and gold are also falling, a phenomenon some say is the result of widespread uncertainty.
Japan’s Nikkei 225 stock average fell more than 1,000 points, or 11 percent for the day. The index fell 6 percent Monday.
In the U.S., Dow Jones industrial average futures fell 271 points, or 2.3 percent, to 11,655 ahead of the opening bell.
Standard & Poor’s 500 index futures fell 35 points, or 2.7 percent, to 1,255. Nasdaq 100 index futures fell 70, or 3.1 percent, to 2,220.
Peter Cardillo, chief market economist at New York-based brokerage house Avalon Partners, said fear had taken hold in the market as traders worried about the nuclear crisis and a possible slowdown in Japan’s economy, the world’s third-largest.
“It’s a situation where you sell, and you ask questions later,” he said.
Oil prices fell $3.95 to $97.22 as analysts anticipated lower demand in the aftermath of the earthquake.
“It’s a combination of uncertainty and risk aversion,” Commerzbank analyst Eugen Weinberg tells CNBC about the oil drop. “It’s not really fundamental concerns that Japan, one of the largest oil consumers, will be missing over the next few months. It’s more sentiment that is depressing the prices of risk assets such as equities and commodities.”
Other commodities, including gold, silver and copper, also fell.
Gold was down over one percent on Tuesday, after gaining about 1 percent on Monday. But that, one analyst says, is partly because people are using it to cover other losses.
“We argue that it’s not unusual for gold to tumble during initial episodes of a severe broad asset sell-off. Investors sometimes have little choice but to sell the yellow metal to cover margin calls and losses elsewhere before gold then divorces itself from the downtrend,” UBS strategist Edel Tully tells CNBC.
“In the current climate there is more opportunity for gold to rally, as the need for safe havens accelerates,” she said.
The Associated Press contributed to this report.




















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Comments (81)
Wilma
Posted on March 15, 2011 at 4:41pmThere soon will be a great need for building supplies in Japan. Great financial success will come to those who position themselves to respond to this future need.
Report Post »Maggie in Indiana
Posted on March 15, 2011 at 3:25pmFalling stocks means falling prices right? Shhhhh YEAH!
Report Post »mossbrain
Posted on March 15, 2011 at 2:55pmNoooooooooo! Please tell me the price of tin foil will not raise at this time when we need it the most for protection from the radiation clouds.
Report Post »PuntoVistaSur
Posted on March 15, 2011 at 2:45pmShe’s blonde…enough said…
Report Post »JustaThought
Posted on March 15, 2011 at 1:27pmFact is, as Easter & Spring Break approaches and Memorial Day trails closely behind the price of auto fuels almost always goes up … regardless of natural disasters, wars or world-wide market slumps. This is just an old game with new “variables”. It is far, far past time that we tap into all of our “black gold”, wave our middle fingers at the Middle East and chant, “See ya. Don’t need ya!”
Report Post »Bushie
Posted on March 15, 2011 at 12:59pmWhere is our Commander and Idiot on this issue? You would think he would get on TV and let the American people know the truth of what’s going on. That would make sense and maybe cool our stock market as well. But, when has this miserable excuse for a leader ever made sense? Maybe he is busy spending OUR money planning the next party at the Blackhouse.
Report Post »jerry1945
Posted on March 16, 2011 at 11:05amIt is going just as the Anti Christ in Chief has planned.
Report Post »chuck_wagon
Posted on March 15, 2011 at 12:38pmOK, here’s the Chuck prediction:
Report Post »The Japanese government will have to sell a large portion of the US bonds they hold to a less than trusting world that will push the rates up thus causing another big dip and recession to follow.
RightPolitically
Posted on March 15, 2011 at 11:53amMore that just “earth” got all shook up!
Report Post »eyestoseeearstohear
Posted on March 15, 2011 at 11:44amYEP!
The WORLD is falling apart – JUST AS OBAMA PLANNED….
While HE goes off the play GOLF…and holds talks on NON-RELEVANT MATTERS.
BUT- what’s MORE CONCERNING is – people & some memebers of Congress are
BEGGING HIM to “be more concerned, involved and caring” about the US Finances,
Japan and Quadiffi?
DON’T THEY GET IT?
WHY would he be those things when EVERYTHING IS GOING AS PLANNED?
His CONTROLLED COLLASPE is working fine….
The HARD PART FOR HIM is to FIND OTHER ISSUES THAT ARE SO FAR APART
FROM THE REAL ISSUES…and pretend to be concerned about those things.
This sorry azz Congress, who is APPARENTLY SO STUPID THAT THEY PRETEND
THEY CANNOT SEE WHAT HE’S DOING – AFRAID TO SAY WHAT HE’S DOING AND
ARE WILLING TO ALLOW HIM TO DO – IN FEAR OF THEIR OWN AZZ’S BEING BURNED!
THEY ARE EQUALLY UN-WORTHY TO REPRESENT OR PROTECT THIS NATION.
” YOU’RE EITHER A PART OF THE SOLUTION – OR YOU ARE THE PROBLEM”
And, HALF-AZZ EFFORTS TO SOLVE A PROBLEM – DOESN’T SOLVE THE PROBLEM.
IT JUST PROLONGS THE PROBLEM.
They are ALL tossing pebbles AT situations when they SHOULD BE SHOVING BOULDERS
Report Post »INTO OPENINGS & THE MAJOR HOLES OBAMA HAS MADE IN OUR COUNTRY & SYSTEM
TO SHORE THEM UP FOR GOOD!
JesusChrist
Posted on March 15, 2011 at 12:49pm” YOU’RE EITHER A PART OF THE SOLUTION – OR YOU ARE THE PROBLEM”
@Eyestosee
“only the sith deal in absolutes” – Obi-wan Kenobi
Report Post »sleazyhippo
Posted on March 16, 2011 at 9:46amJeez – sure is a LOT OF YELLING going on down here! Is somebody upset, or what! (smile)
Report Post »vennoye
Posted on March 15, 2011 at 11:37amWe get up every day and decide whether we are going to live our life in fear or faith…..we make the choice. Whole lot easier to live in faith….look back over your life and see what faith has pulled you through. We all have testimonies for that!
Report Post »BUT, if you decide to live in fear, remember the little mantra for that:
“”When in trouble, when in doubt,…..run in circles, scream and shout”!!
Can tell you that I never got too far with that one. :-)
Mikee T
Posted on March 15, 2011 at 11:22amNothing like a good disaster to fuel these scumbag speculators to short commodities, stocks..etc…for the SOLE purpose of a calculated bet………something really wrong with the whole Wall Street thing ladies and gents………I mean, look at how @sswipe Soros was able to make 1 billion dollars in the mid nineties on one trade that he leveraged massively shorting the British pound/sterling…..causing or accelerating a financial crisis for many unsuspecting, undeserving working class brits…………makes me sick……
Report Post »alexegz30
Posted on March 15, 2011 at 11:16amThe wakefullness of the world is what will eventually save us all. As long as the ignorant continue to blindly follow the corrupt leaders with no interest other than power and control, we are the few who see through the veil of deceit.
You do not need to be of any particular country or political orientation to see the truth. You only need to think for yourself, rather than allow these manipulators to think for you.
This natural disaster must be seen for what it is: A real emergency that has worldwide consequences, not a made up emergency being used by politicians to push through more control and expand their corruption.
Report Post »JP4JOY
Posted on March 15, 2011 at 11:30amGood luck with that. Worldwide calls for no more “nukes” are raging.
Never let a crisis go to waste.
Report Post »Igno Ramus
Posted on March 18, 2011 at 12:17pmThese fools wouldn‘t know a crisis if it bit ’em in the butt.
Report Post »jungle J
Posted on March 15, 2011 at 11:05amthis will sort out the weaklings. The rotten will be exposed..sometimres in your garage or house stealing your stuff…be prepared.
Report Post »JohnK144
Posted on March 15, 2011 at 11:02amOK, but at least we‘ll soon know obama’s NCAA picks.
Report Post »Gonzo
Posted on March 15, 2011 at 11:12amI hear he worked on his bracket after his round of golf this weekend. So nice see that his priorities are intact!
Report Post »GhostOfJefferson
Posted on March 15, 2011 at 12:53pmIt is absolutely strange how every time an actual crisis pops up, Obama finds the fast train out of town and takes a vacation or a “rest break”. You don’t even have to hate the man to notice a rather blatant pattern going on with this.
Report Post »Lloyd Drako
Posted on March 15, 2011 at 2:47pmRelax! If Obama has time for all this, how bad can things be?:)
Report Post »miles from nowhere
Posted on March 15, 2011 at 10:57amFollow the path of corrupt politcians and bad decisions and you end up like Japan. The US is right behind Japan with the same misguided leadership of Obama and the Democrats because there seems to be no end to the corruption, incresing debt, out of control spending. Obama is leading the country over a cliff. Impeach him now!!!!
Report Post »Evileye
Posted on March 15, 2011 at 10:52amThis has more to do with the laws of thermodynamic than something mystic
Report Post »chickenlittle
Posted on March 15, 2011 at 11:00amHuh????
Report Post »Gonzo
Posted on March 15, 2011 at 11:14amWho created the “laws of thermodynamic”?
Report Post »Igno Ramus
Posted on March 18, 2011 at 12:13pmLAWS? We don‘t need no stinkin’ laws! Are we talking mistic pizza here?
Report Post »TnTrader
Posted on March 15, 2011 at 10:51amAmerica‘s treasury bonds are in trouble due to the artificial interest created by the fed’s QE2 program which ends this month. When/if the federal reserve quits buying , and with Japan likely to begin redeeming their holdings of U.S. debt, their will probably be a major failure in offerings. This will cause yields to rise which will cause our debt to become even more expensive to maintain.
Japans economy was already very sluggish when the earthquake knocked the legs out. Japans “Lost Decade” had resulted in a debt load of over 200% of GDP, yet instead of paying down their public debt as the economy improved they purchased U.S. debt at an accelerated rate.despite the fact that the yield was actually below the rate of inflation. This never made sense to me.
Japans manufacturing sector is/was heavily dependent on American trade and almost 100% dependent on importing raw materials. The commodities markets will soon feel the effect of losing one of its most prolific buyers, this part will be particularly nasty. Japans loss of manufacturing infrastructure and the severe damage to its ports will have a ripple affect even farther away than the waves of the tsunami. It will hit Europe’s shores first but America will get a dousing as well.
As the effect of the commodities (metals, grains, etc..) demand decreases so will the prices. As these prices fall the GDP estimates will be revised to reflect the new reality. As the GDP numbers revise downward bond yields will rise to reflect the greater risk involved in holding public debt instruments. This will lead to even worse results at treasury auctions in the U.S.
If recent history is any indicator, this will lead to QE3. That will be the death knell of the dollar. Bernake and companies Keynesian lunacy will be complete.
De Opresso Libre
Report Post »code green
Posted on March 15, 2011 at 11:20amTime to dump your bonds and trade for stocks . This is a buyers market, take advantage if you can .
Report Post »Donnalashelle
Posted on March 15, 2011 at 8:09pmIt is past time to stock up on food and gold.
Report Post »912828Buckeye
Posted on March 15, 2011 at 10:47amHow long ago was it that G.B. recommended to get out of the market?
Report Post »Augie4
Posted on March 15, 2011 at 10:45am“Oil prices fall to lowest level in weeks”
NEW YORK – Energy prices are tumbling to the lowest levels this month . . . .
Benchmark West Texas Intermediate crude dropped $3.77, almost 4 percent, to $97.42 per barrel. Brent crude, heating oil, natural gas and gasoline futures also dropped between 2 and 6 percent. Retail gasoline also fell slightly for the first time in nearly a month to a national average of $3.556 per gallon.
THANK YOU PRESIDENT OBAMA!
(Since you were to blame for rising oil prices, you now get the credit when they fall.)
Report Post »Snowleopard {gallery of cat folks}
Posted on March 15, 2011 at 12:15pmSince the oil prices have fallen after this large disaster in Japan, should Obama also be given the credit for initiating the disaster to lower the cost of oil as a solution to the high prices?
Report Post »sleazyhippo
Posted on March 15, 2011 at 1:45pmYes, of course! That’s WTCFWD!
Report Post »heavyduty
Posted on March 15, 2011 at 10:41amI don’t put my trust in earthly materials. God will provide what I need. So the price of gold can fall through the floor for all it means to me.
Report Post »seemsew
Posted on March 15, 2011 at 10:39amI have felt that the entire upswing of the market during the last six months has all been phony, and my conspiratorial mind has said “watch it.” Spooky Dood and buds are luring people back in simply to clean your clock once again. The rise just makes no sense when growth is so limited and jobless rates so high. Where’s the beef? The Japan disaster may be the perfect cover for the wipe out.
Report Post »Mike777
Posted on March 15, 2011 at 10:11amKeep praying and trust God.
Report Post »MikeinIdaho
Posted on March 15, 2011 at 10:37amAnd stock up on food and ammo, this could get VERY ugly, VERY fast. Remember that it was a member of the Obama Regime that told us that they would not “waste a good crisis”. They will be looking to turn all this to their advantage in the days and weeks ahead. Again, be prepared and pray for help from God.
Report Post »(God helps those who help themselves!)
Gonzo
Posted on March 15, 2011 at 10:05amDoes anything good happen anymore?
Report Post »TSUNAMI-22
Posted on March 15, 2011 at 10:06amIn the end, the Devil ultimately loses.
Report Post »commonsenseguy
Posted on March 15, 2011 at 10:09amgonzo, we are a live,and we do have the option to either accept what is going on now or we can get down and dirty and change things, there is always something great in everyday life,you just have to see it.
Report Post »ltb
Posted on March 15, 2011 at 10:11am“…But woe to the earth and the sea, because the devil has gone down to you! He is filled with fury, because he knows that his time is short.” (Revelation 12:12)
Report Post »gman46
Posted on March 15, 2011 at 10:12amThe darkest nights often bring the brightest days.
Report Post »Gonzo
Posted on March 15, 2011 at 10:18amcommonsenseguy
Report Post »You are right of course. The bad stuff just seems unrelenting these days.
Snowleopard {gallery of cat folks}
Posted on March 15, 2011 at 10:20am@Tsunami 22
Indeed, in the end the Devil will lose completely, in Ezekiel 28 (Second lametation of the king of tyre) in v12-19 it describes Lucifer and his ultimate destruction at the hands of the Almighty.
Report Post »cessna152
Posted on March 15, 2011 at 10:28amGonzo
Posted on March 15, 2011 at 10:05am
Does anything good happen anymore?
_______________________________________________________________________________
I am more of a “realist” who leans “pessimistically” but I sense that good will be coming soon. We have been praying for REAL change of hearts in this country and it is happening. Remember, you’ll never experience the “peaks” if you never are in the “valley”. The deeper the valley the more exhilarating are the peaks…
Report Post »chickenlittle
Posted on March 15, 2011 at 10:36amI can’t quote appropriate Bible passages like others on here… although they are pertinent. I spend too much time feeling like what Gonzo said. But then, for all the “bad” news we didn’t seem to have as much of for decades, I wonder if we are not just being allowed to “wake up” for the first time in decades and being allowed a chance to maybe right some wrongs by letting us see (no matter how cynical we thought we were) situations that have been building and “progressing” under a grand plan that should have been part of our lives for a long time… being brought to light by FOX and the internet, etc. for only the last few years. I think we have a lot to catch up on… and have to get back on track… for real this time.
Report Post »Snowleopard {gallery of cat folks}
Posted on March 15, 2011 at 11:33am@Chickenlittle
It is not necessarily what we know, it is how we chose to live our lives in relation with God and the Lord Jesus, and indeed I also wonder in these times if the awakening that is going on is to give us a time to stop what is wrong and turn our path back to where we need to be.
All humans make mistakes, large and small, the key is to be willing to learn from them, both our own and others; at the same time if we refuse to learn then the price will be paid by us, and maybe even those around us as well.
Report Post »GhostOfJefferson
Posted on March 15, 2011 at 12:51pmGONZO
“Does anything good happen anymore?”
Boy Scouts still help people in need, VFW members still walk with the flag in the local parades on the 4th of July, the sun is gloriously beautiful when it pokes out from behind a cloud, kids still play in the parks, men still sing songs to women while sitting under a tree in springtime, medical scientists are still cranking out amazing cures, our longevity is increasing, Churches have food pantries and daily help those in true need, the vast majority of us live in conditions that kings 800 years ago could only dream of, and Pauly Shore has not made a movie in a long, long time.
There is still good in the world sir. :)
Report Post »sleazyhippo
Posted on March 15, 2011 at 1:42pmChin Up! (smile)
Report Post »Don’t be a Pelossie/wussie – !
Lloyd Drako
Posted on March 15, 2011 at 2:43pmMuch appreciated, Ghost!
Report Post »tankerBigRed1
Posted on March 15, 2011 at 8:35pmJust remember Otoles commentary-“Murphy was an optimist”
Report Post »JP4JOY
Posted on March 15, 2011 at 10:04amCould be the ongoing disaster in Japan is the trigger for our next down leg. Many economists have been waiting for a second downturn in the heavily manipulated (can you say Tarp, QE1, QE2) markets. These high “recovery” prices are on no volume and no employment and we have been setup by Wall Street to put what savings we had left back into stocks. Stand by, this could be worse than the 2008 drop.
Report Post »Snowleopard {gallery of cat folks}
Posted on March 15, 2011 at 10:17amSomehow I feel like the world has once again been set up on its head and the old equation of 2+2 no longer makes four…everything once again has changed.
Report Post »cessna152
Posted on March 15, 2011 at 10:23amHonestly, I got no answer for what is going on now. All I know is the market is very unstable!
Report Post »Xcori8r
Posted on March 15, 2011 at 10:26amMaybe it’s just me, but I believe that there is a whole lot of smoke and mirrors being put up now.
This tragedy might shake out a bunch of the manipulators.
One of them might be the Fed.
Report Post »starman70
Posted on March 15, 2011 at 10:44amI’ve read he last chapter of the book (The Bible) and we (Christians) win. Put your entire trust in GOD and JESUS. There will be calamaties and disasters until the end of this age. Don’t be frightened but be prepared.
Showtime
Posted on March 15, 2011 at 10:49am@Xcori8r
Posted on March 15, 2011 at 10:26am
Maybe it’s just me, but I believe that there is a whole lot of smoke and mirrors being put up now.
This tragedy might shake out a bunch of the manipulators.
One of them might be the Fed.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~`
Ya think? Hmmmmmmmm!
Nah– We can’t possibly be being manipulated, now can we?
All I know about economics would not fill a thimble, but I do know that a bad move is to spend more than one makes, and debt equals money being paid to someone else instead of being saved.
I just try to keep on keeping on, doing the best I can, and trusting that the Lord will watch over us all..
Report Post »bullcrapbuster
Posted on March 15, 2011 at 10:57am@Jayp…….Right on. Bull market of the past months was a government project and is failing as do all government endeavors.
Report Post »ManThong
Posted on March 15, 2011 at 11:38amOMG
That last 500 oz of Ag I got is worth almost $ 700.00 less than I paid for it!
I sure hope it doesn’t drop to zero.
Report Post »PA PATRIOT
Posted on March 15, 2011 at 12:57pmMANTHONG,
Report Post »That is a sick name.
Ag was never above $ 37.00 in the past 10 years.
Buck up.
PA PATRIOT
Posted on March 15, 2011 at 1:00pm1 pm est.
Gold down $ 33.91
Report Post »Silver down $ 1.63
ManThong
Posted on March 15, 2011 at 1:09pmPA PATRIOT
Report Post »Posted on March 15, 2011 at 12:57pm
MANTHONG,
That is a sick name.
Ag was never above $ 37.00 in the past 10 years.
Buck up.
———————
Yes it is – thank you for the acknowledgment,
All along, my only hope is that silver returns to its non-inflated 1981 price.
Maybe I’m just all bucked up.
sleazyhippo
Posted on March 15, 2011 at 1:36pmThere’s more to life than Money! (grin)
DVD Box Set of HBO 24/7 Penguins/Capitals Road To NHL Winter Classic, — $80.00.
2010 Super Bowl tickets to see Green Bay wipe the field with the $teelers, — $500.00.
Watching Mario Lemieux go bankrupt by investing in Gold, – Priceless.
Working very hard to be debt free – Sadly Undervalued (SU) for Ear Smokers (ES)! (smile)
Report Post »PA PATRIOT
Posted on March 15, 2011 at 4:19pm@sleazyhippo
Didn’t you get your butt burned off the last time you spouted off about gold as an investment?
You better remain on good behavior or the Blaze will burn your posts.
TruthTalker
Posted on March 15, 2011 at 9:59amThe reprecussions will go deeper than this.
Report Post »ishka4me
Posted on March 15, 2011 at 11:05amwithin seconds of oil rising, all gas stations change their prizes within seconds, when oil prices drop, they stay the same. anybody else notice this?
Snowleopard {gallery of cat folks}
Posted on March 15, 2011 at 11:30amAgreed, the one thing in history I have noticed is any time there is a disaster of nature, economic or political, there will be echos carrying on for years into the future; each one of these echos carries with it the potential to cause more disaster if it hits at the right time with others.
Report Post »OutOfTheAether
Posted on March 15, 2011 at 11:36amISHKA4ME
Yup, I’ve noticed the same. One of my pet pieves
Report Post »Gold Coin & Economic News
Posted on March 15, 2011 at 11:45amNuclear meltdown leads to financial meltdown.
Fulksie
Posted on March 15, 2011 at 11:45amI‘m only 30 and I’ve noticed that since I started paying gas in Pop’s car at 16.
Report Post »Anonymous T. Irrelevant
Posted on March 15, 2011 at 12:15pmTipping point?
Report Post »lionslayer44
Posted on March 15, 2011 at 1:02pmi wonder if Americans started buying our gas only from American oil companies would that get the drilling started? yep prices at the pump stay up even when the price of crude goes down. here in Az. we dont have laws against gouging so the gas station owners have lots of fun at our expense. where i live its a tourist trap and the gas is always one of the highest in the state. i fuel up when i go shopping in town.
Report Post »CatB
Posted on March 15, 2011 at 1:25pmI do buy my gas from only two stations both U.S. … and yes .. when oil goes up gas prices rise SHARPLY .. when they hold or fall .. they take a LONG time to go down … if at all.
I would NEVER buy gas from a Citgo .. if they were the last stations open.
Report Post »sleazyhippo
Posted on March 15, 2011 at 1:30pmGOLD will Not Fall!
Report Post »If it does, GOLD Will Come Back!
This story is propaganda!
DO NOT read this story!
jackrorabbit
Posted on March 15, 2011 at 1:37pmFood prices for rice will suffer as well.
Report Post »poverty.sucks
Posted on March 15, 2011 at 2:19pmGod our creator is a jealous one, do not idolize others. Will take a lot of prayers to overcome Japand 90% dedication to Buddhism.
Report Post »sleazyhippo
Posted on March 15, 2011 at 5:29pmHa Ha Haaaaa
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