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Sat Apr 30, 2016, 12:26 AM

Anyone know why the Nikkei dropped 3.61% today?

Other markets were down today, but nothing unusual.

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Reply Anyone know why the Nikkei dropped 3.61% today? (Original post)
Algernon Moncrieff Apr 2016 OP
bhikkhu Apr 2016 #1
Algernon Moncrieff Apr 2016 #2

Response to Algernon Moncrieff (Original post)

Sat Apr 30, 2016, 12:30 AM

1. The markets were hoping for a positive stimulus decision from the BOJ

their decision was to not increase stimulus. Big movements like that imply that many believed there would be a positive decision, and that belief was priced into the market before the decision.

Kind of the same thing as when a corporate stock runs up before an earnings report when people expect a very positive report; then if the report is disappointing a bunch of holders rush for the exits first, trying to get out before the stock returns to a price more justified by its actual revenues.

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Response to bhikkhu (Reply #1)

Sat Apr 30, 2016, 12:32 AM

2. Thanks!

Wonder if this will drag other markets down on Monday?

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