After a day to forget for the European and US stocks which saw major indices in Europe lose more than 3% and US more than 1.8%, the Asian markets followed in the same path. Japans Nikkei is down 5.41% at time of writing, as the anxiety over slowing growth, falling oil prices (again below $30) and very low interest rates took its toll in investors’ confidence. Some Asian markets including China, Hong Kong, South Korean, Singapore and Taiwan are still in Lunar New Year holiday.

The slump in Asia is also caused by a surge of the JPY versus the USD which rose to over a 1 year high which touched 114.20. Rises in the yen make Japanese exports less competitive and reduce the value of repatriated profits. Gold touched $1200 for the first time since June 2015 after it surged 3% in yesterday’s session as investors pile up into this safe haven asset.

The economic calendar is light today. German trade balance, UK trade balance and US wholesale inventories will be featured. But main focus will remain on the development in risk sentiments. Federal Reserve Chairwoman Janet Yellen will update the U.S. Congress on monetary policy on Wednesday and Thursday.