Market sentiment was dampened by overseas investors who were net sellers in pre-opening orders today for the fifth trading day in row, on fears that possible increases in interest rates in the US and Japan could raise their funding costs for investing in equities here.
Banks are also trying to test their credibility in the market after having not issued bonds or equities for a long while.
A softer New York market also helped accelerate the move.
After share prices surged two trading days in a row, market participants chose to lock-in profits.
Most major firms have already reported their earnings, so market players are starting to shift their focus to macro indicators from micro ones.
This is typical market behavior right before official book-closings. We're seeing institutional investors selling cross-held shares and taking profits, while some are staying on the sidelines.
This is typical market behavior right before official book-closings, ... We're seeing institutional investors selling cross-held shares and taking profits, while some are staying on the sidelines.
There's a bit of a 'wait-and-see' mood in the market right now. Investors are waiting to hear more about interest rates and the government stance on IT growth.
In addition, the market has risen steadily as of late, so I think investors were hoping to see a correction at some point. In a sense, the jobs data became an excuse for the correction.
The market's been hoping the Fed will announce a shift toward a neutral bias (towards future interest-rate changes), which could help the U.S. market recover.