Stocks drops in U.S., Europe and Asia following Japan’s quake
The Dow Jones Industrial Average dropped 0.4 percent to 51.24 points, as the S&P 500 also decreased by 0.6 percent on Monday, March 14, following the previous week's earthquake in Japan, according to Bloomberg.
Ongoing worries about Northern Japan's nuclear plants, damaged by the earthquake, could also dampen stock prices.
Japan's central bank increased its money market by $183 billion following the quake.
“The market is pricing in a better understanding of the enormity and complexity of the natural disasters that struck Japan. The immediate impact will be felt through lower global aggregate demand, disrupted supply chains, and funds flows into Japan," Mohamed El-Erian, CEO of Pacific Investment Management Company, told the news source.
Meanwhile, the Nikkei Stock Average in Japan dropped almost 11 percent, with Asian and European stocks declining as well.
Some global nuclear power programs are watching the developments in Japan's power plants closely. India's Nuclear Power Corporation, China's National Development and Reform Commission and Germany's Chancellor Angela Merkel all have respective nuclear programs that may be affected by new safety concerns.
“Sentiment is pretty negative right now. It seems as if it’s taken the markets a couple of days to really react to what’s happening in Japan and they are now really starting to price in the catastrophe," said Mads Koefoed, a market strategist at Saxo Bank..
General Electric, Coach, Tiffany & Company as well as casino company Las Vegas Sands all posted drops in the market as of Monday, reported Bloomberg. Alternative energy companies such as MEMC Electronic Materials (WFR) increased, with WFR posting an 11 percent increase.