The Japanese market might have been closed Monday but that didn't stop much of the rest of Asian markets from taking a hit. With the Japanese market being closed it might have lessened the damage.
It was Asian markets lowest level in over a month based on what many believe was China's recent negative economic news. The MSCI, the broadest Asian-Pacific index excluding Japan was down again, according to Reuters, hitting its lowest level since early August.
Numbers released over the weekend showed weaker Chinese factory output in August accompanied by a slowdown in other sectors. Commodity currencies like the Australian dollar took the brunt of the blows as Chinese officials noted they would spend more efforts on employment and were comfortable with the current rate of growth. Translation to investors: further government stimulus will remain on hold for foreseeable future.
Look no further than American-based Cliff Natural Resources (CLF). Cliffs manages and operates five iron ore mines located in Michigan and Minnesota. The U.S.-based mines currently have an annual rated capacity of 32.9 million gross tons of iron ore pellet production, representing 59 percent of total U.S. pellet production capacity to get an idea about the metal.
So far in 2014 iron ore prices are down around 40 percent, adding more pressure on commodity currencies and the concerns about a global recovery. Falling copper and energy markets have added to the weakening signs.
About the only bright spots have been U.S. markets and the rally in the dollar. But that could change too pending this week's Yellen report.
t. man hatter
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