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One of the reasons has been the sharp rise in yen by almost 3% on Tuesday. Japans bank had more money with them and the liquidity was high so they are able to lend with more than .5% interest per annum will produce highly due to leveraging effect.

Another reason was the sudden plunge in shanghai market to the tune of 9%. There have been rumors that china was likely to raise interest rate and clamp down on errant investors.

There is also a concern of bubble growing.

The stock markets all over the world fell for almost a whole week.The markets were very volatile and it fell on this friday as well.Oil prices fell on friday with Light, sweet crude for April delivery fell 36 cents to settle at $61.64 a barrel on the New York Mercantile Exchange.Brent crude for April lost 3 cents to settle at $62.08 a barrel on the ICE Futures exchange in London.the reason beng tensions over possible sanctions in Iran .

The wall street had a steep fall yesterday and staged a comeback later. After falling 209 points the Dow Jones industrials staged a comeback to end at 34 points lower. There is still anxiety in the wall street with high volatility and nervous investors.The Standard & Poor’s 500 index fell 3.65, that is 0.26 percent, at 1,403.17. Earlier it dropped 26 points .Nasdaq composite index also finished down 11.94,that is 0.49 percent, at 2,404.21. Earlier it fell 56 points.Dow Jones industrial average was down 60.16, or 0.49 percent, at 12,208.47. The Institute for Supply Management’s index ofassessment of manufacturing activity was at 52.3, stronger than the 50.0 analysts expected.The yield on the benchmark 10-year Treasury note falling to 4.53 percent from 4.57 percent . The maket fall is expected to go on for a few more days.The stocks began to fall after there is a general fear that many fo the economies are slowing down especially the chinese and the US.

Japan’s Nikkei stock fell 0.86 percent. Hongkong market opened on positive note on thursday and Nikkei still down around 200 points.singapore also openend lower.Today is also supposed to be a roller coaster ride in the stock market.

Stocks markets all over the world are tumbling which started yeserday. China’s Shanghai Composite Index and the Shenzhen Component Index both plunged more than eight percent each its severest drops in a decade. Australian stocks joined the worst sharemarket rout since September 11, 2001 fell by more than 3 per cent when the markets opened today morning. Wall street shares also declined steeply with Dow Jones plunging 3.17 percent.New Zealand share prices plunged 2.9 per cent in the first hour of trading. Former Federal Reserve chairman Alan Greenspan  had warned that the US economy has been expanding since 2001 and that there were signs that the current economic cycle was coming to an end. There is also the  rising tension about Iran’s nuclear program also served to undermine investor confidence. Shangai stock has started to come back today.
Indian stocks also tumbling ahead of the finance ministers budget speech today.

Experts are of the opinion that this is a correction and not a start of a long bull market because the outlook on long term look strong. While some experts advice to go in and buy at the lower prices, others advice to get out of the market immediately.