Data last Monday showed Japan economy shrunk 0.9 from last years growth of the same period, July to September. Faltering economy and weak spending of consumers caused total chaos on the Asian market, pulling some improving trends in the region.
"There is a fair bit of caution out there with a lot of things to be dealt with globally," Juliana Roadley, market analyst at Commonwealth Securities, explained.
Earlier, President Barack Obama had called for the Congress to discuss on the possible measures to help meet demands and solve issues on the fiscal cliff. The deficit of the United States had created a turmoil not only the nation, but also on other small economies across the globe, even dampening on the growth of the Asia's superpower, China.
"Commodities in general will be weighed down as November and December mark the bookclosing season for hedge funds," Naohiro Niimura, a partner at research and consulting firm Market Risk Advisory, said.
Oil price in the US reached $85.94 a barrel, while Brent sells for $109.05 a barrel.
"Since these public spendings will likely come from bank loans, sluggish loan data suggests investment may not have begun," predicted Niimura on concerns of the consumer low spending habit.
Economists have seen a opportunity for growth as China and Japan worked out economic measures to avoid the conflicting impact of the Western market. In the same manner, Greece approved measures to balance budget and keep the bailout working. Several EU countries are still in deep problem of bankruptcy, amidst the global crisis.
Read more on this news at: http://www.reuters.com/article/2012/11/12/us-markets-global-idUSBRE88901C20121112.
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