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Asian Stocks tumbled another step struck by another selloff in the Oil market on Tuesday and continuing concerns about the banking sector, particularly European Banks. The Japanese Nikkei fell 2.31 percent today after breaching the low of December, 2014 yesterday .The TOPIX index dropped 3.02 percent. Both Nikkei and TOPIX dropped more than 5 percent on Tuesday. So the negative interest rate in Japan has failed to support their Stock market as stocks have fallen more than 10 percent so far after the announcement of adopting negative interest rate by BOJ.
Reports indicate that Industrial Production in France continues to decline. It fell 1.6 percent in December,2015 after falling 0.9 percent in November, 2015 . In the manufacturing industry, negative growth has returned as it fell 0.8 percent in December, 2015 after gaining 0.6 percent in Novermber,2015.
Attention now Shifts to the 2 day testimony of Fed Chief Janet Yellen on Capitol Hill that begins later today. The key take-away everyone hopes to derive from this 2 day event is indication on the direction of interest rates in the US. Markets – including the Fed Funds Futures, EuroDollar Futures, S&P500 and Bond Markets seem to be indicating a less than 20% chance of a rate hike this year. This matches up against earlier expectations of up to 2 rate hikes this year at the time of the previous rate hike, less than 2 months ago by the Fed.