When America sneeze, the rest of the world get a cold. That's the old logic in the finance markets...notice the word OLD. How things have changed! After a dizzying sell-off in China, the global markets went into a tailspin and everyone must update their logic.
Japanese share prices dropped 3.56% (644.85 points) in morning trade; U.S. stocks plunged to their worst one-day performance since 9/11, dropping 415 points (the Dow Jones dropped 200 points in just one minute); Singapore opened 4.82% lower; all tracking the 9% plunge in China. Concern over China's possible stock bubble and an America slowdown created almost the perfect storm for markets to sell, sell, sell!
Doesn't matter what stock you own in Singapore, Singapore Airlines, SPH, OCBC, Venture Corp; all are down. That plus Iran's foreign minister saying that they will never suspend its uranium-enrichment program and a suicide bombing in Afghanistan means that the great sell-off may not be over yet.
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