You may be wondering why US stock futures were so far in the red on Monday. As of 3:15 a.m. ET, Nasdaq futures were down 4.95%, while Japan’s Nikkei 225 index crashed 12.4% overnight.
That was the biggest loss for the Nikkei since 1987. Banks in Japan did even worse, falling 17%, their biggest one-day loss on record.
Let’s take a look at what happened in world markets overnight, and why Japan’s “carry trade” could be leading to panic selling across the globe.
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