After global capitalization hit a record $64,96 trillion, and the MSCI Asia Pacific index hit a six-year high, the correction that began on Wall Street yesterday has continued in Asia. The regional index is falling 0,4% at mid-day, and in Tokyo the Topix (which has a larger capitalization than the Nikkei) drops 0,2%, with the yen strengthening slightly (102,1 against the dollar ).
Barring unexpected changes in fundamentals, the correction shouldn't get much bigger; a physiological post-record correction appears. The Chinese slowdown is under control, the economy is stabilizing and the US recovery is intact (retail sales and unemployment benefits data to be released today).
The euro is stable, around 1,354 against the dollar. Gold is at yesterday's levels (1261 $/ounce) and WTI oil is also little changed, at 104,6 $/b.
