NIkkei Index down to four week lows, targeting 23,100.00

Japan's Nikkei Index has reached a four-year low following a rough trading day, almost falling to 23,100.00, it's weakest value since the first trading day of the year. The Nikkei has now fallen for five straight days, with most sectors in the negatives, being led down by real estate firms and mining/steel companies.

Global equities are beginning to show signs of strain after rallying for most of 2017, with Wall Street leading the way. The recent surge in US bond yields could be cooling the bullish momentum, as the Dow posted its largest two-day decline since September of 2016. Higher yields are seen negatively impacting equities as investors reallocate financial resources to include the climbing bond payouts, especially with the US 10-year Treasury note reaching 2.73%, an almost four-year high.

Bonds are beginning to stretch out yields as global financial markets begin to price in the eventuality of tightening monetary policy from central banks around the world, and equity indexes could wake up to that fact soon, driving bearish sentiment at the prospect of a dwindling easy money supply.

The Nikkei Index has now fallen about 3.8% from the 26-year high of 24,195.00 it hit just a week ago.