The S&P/ASX 200 Index (Index: ^AXJO) (ASX:XJO) has slumped more than 1.4% as tensions in Eastern Europe escalate and weak Chinese economic data weighs on investor's confidence.
The index fell to 5,336.7 in early morning trade, led by investment bank Macquarie Group (ASX: MQG) down 2.5%, Wesfarmers Ltd (ASX: WES) owner of Coles losing 2.4%, iron ore miner Rio Tinto Limited (ASX: RIO) 2.3% and insurer QBE Insurance (ASX: QBE) sliding 2%.
All top 20 ASX listed stocks are down, with Woodside Petroleum (ASX: WPL) the best of the lot, slipping 0.4%. According to Fairfax media, a whopping 183 of the top 200 stocks have recorded early price falls.
Overnight, the Dow Jones fell 1.1%, while the S&P 500 closed down 1.2%.
China slowing
Chinese factory output rose in January and February by the lowest level since the global financial crisis, and retail sales have slumped, growing at the slowest pace in a decade. Copper and iron ore prices, both key Chinese imports, have dropped by 12% and 20% respectively since the start of the year.
The weak data boosts the likelihood of China taking steps to stimulate growth, with Societe Generale predicting the first cut in two years to lenders' reserve requirements. China could also increase infrastructure spending, which could see copper and iron ore prices bounce.
Ukraine
The situation in Ukraine appears to be going from bad to worse, as the Ukraine mobilised a volunteer force to stop Russia troops from advancing beyond the Crimean Peninsula. Crimea is holding a much-criticised referendum this weekend on whether to split from Ukraine.
The US has already imposed some sanctions against Russia, including visa bans for officials and threats of further steps. German chancellor, Angela Merkel has also warned Russia that should it continue down the path it is following, the country faces massive economic and political damage.
Foolish takeaway
Falling prices may well represent an opportunity to pick up high quality stocks on sale. I know I've got my watchlist handy.
