Thursday, 19 April 2007

China the Culprit again!

For the second time in a matter of weeks the fall in Chinese Stock Market has wiped out Billions .. off the major global stock markets across the world - in a few hours after the US Dow and S&P had pulled themselves to their peaks, the Chinese stocks sold off due to yet another possibility of interest rate hike by the Chinese authorities. On Thursday the news of a 3.3% rise in CPI was another indicator that another rate rise may be in the pipeline sooner than later.

As a result, the stocks futures have been marked down considerably at the moment and as things stand, the US is heading for a shaky open. Ebay may be one of the few stocks which could defy the market forces due to better than expected results that was published after the bell yesterday. I expect once the panic is settled down the market overall should start to recover the lost ground. We shall see ...

2 comments:

Anonymous said...

It's truly amazing how this kind of news affects the market...both here and abroad.

Rod said...

derrich,

I would say it would be even more amazing if it didn't, as a sell off in one major market would at least have a psychological effect on other markets - you know what I personally find amazing is that the Indian market always seems to react more acuteley than others in cirumstances like this. I would love to know the reason for that as I have never traded their markets.

Thanks for airing your view.

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