Financial markets around the world have been looming under the dark cloud of global depression, but the markets still seemed to be in a denial mode. The downfall of the markets yesterday ended all the false hopes. This thrashing suffered by the markets clearly indicating signs of economic weakness around the globe has irked the economists and investors alike. The slump of the already weak markets was triggered by the U.S Federal Reserve’s acknowledgement of a significant downside risk to the economy. They also referred to strains in the global economy pointing to the debt crisis in Europe. This statement made on Wednesday hard hit the U.S markets immediately after opening yesterday. All the major U.S indices including S&P, Dow Jones and NASDAQ fell more than 3%. The Australian Index (ASX) slumped by 102 points (2.47%) to its lowest in the last 26 months.

Japan's trade surplus has broadened by more-than-anticipating in July, increasing buoyancy that the nation's economy is continuing to get better. The trade surplus was 72.5 billion yen in July.

When the Asian markets opened Monday morning, August 08 2011, after the weekend, the situation would be a bloodbath all across was expected. After all, the United States lost its platinum AAA rating from Standard and Poor’s following the ‘debt ceiling’ bill saga.

With the stroke of the bell, investors started selling like it was the last chance they would get to preserve their hard earned money.

Japanese shares increased in early trading after Japan stated the G7 FM’s (Finance Ministers) had decided on joint involvement to stabilize the yen. The key Nikkei 225 index increased 2.7 percent to 9,205.67 points.