The markets are tanking today on the back of major global worries. Last night the futures were higher after Japan intervened in the currency markets to push down the Yen against the Dollar. However, that positive vibe was short lived. European markets opened and the massive fear returned. “That place is a mess!” says one trader. The SPDR S&P 500 ETF (NYSE:SPY) is dropping by a whopping 3.35%, trading at $121.90 -4.27. The Dollar is soaring as people run to still the safest currency in the world. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.35, +0.28 (+1.33%).
This flush on the markets is reminiscent of 2008 in the U.S. markets as panic hits the highs. The bottoming tail and reversal from yesterday is ancient history. This is a major negation as traders run for cover. In addition, it was reported that Bank of New York is now charging large depositors to hold money. This is an amazing signal of the fear in the global picture. Basically, this bank is employing negative interest rates. Essentially, you pay them to hold your money. Other banks will probably follow.
Related: Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corporation (NYSE:BAC).