Nikkei Plunge Causes Fall in Global Markets

As reported in an article by Stephen Kirkland and David Yong from Bloomberg News, Japan's Topix Index (TPX) fell by 6.9 percent, which caused markets worldwide to fall. Moreover, metal futures contracted based on news of shrinking Chinese manufacturing and the Federal Reserve is speculated to decrease bond purchasing, putting an end to easy money for companies. The global markets retreated, with the Hang Seng down 2.54 percent and Europe's FTSE 100 index dropping by 1.76 percent. The yen gained momentum in the market, increasing 1.41 percent to 101.69 per dollar. According to a report from HSBC and Markit Economics, factory output in China slid for the first time in seven months. The deceleration of China's growth in the past decade may mark more turbulent times for China's manufacturing and industrial sector. Oil futures slid 1.42 percent and copper dropped .09 percent. Amidst talks of cutting back on bond purchases, Fed Chairman Ben Bernanke stated that ending quantitative easing so suddenly could halt economic recovery.