Is not loss, it is bargain time
July 28th 2007 09:04
Finally the markets this week came to their sense that economics and good credit do matter. After what have been weeks of news that the US subprime mortgage securities are turning their backs it just took Thursday 26th July 2007 to finally digest the reality and sent markets worldwide the dive.
Here is a snapshot of the world major indices on Friday closing:
ASX S&P 500: -2.81%;6,082.900 (-175.600)
DOW: -1.54%; 13,265.47 (-208.10)
NASDAQ: -1.43%; 2,562.24 (-37.10)
FTSE 100: -0.58%; 6,215.20 (-36.00)
NIKKEI 225: -2.36%; 17,283.81 (-418.28)
HANG SENG: -2.76%; 22,570.41 (-641.28)
SHANGHAI SE COMPOSITE: -0.03%; 4,345.36 (-1.10)
Primary concern now is the prospect of the a US economic slowdown which could depress world economic conditions while US banks are also under the spotlight, naturally, driven by the bad credits, all on the background of a rather reasonable healthy economic growth in the US.
Private equity activities are not spared either as leveraged buyouts will be under increasing scrutiny.
On the local front, the ASX S&P 200 index lost 3% but in addition to the imported concerns from US, the market would likely to be on the sideways in anticipating RBA decision on interest rate rise next week. The possibility is there but signals given by the economists are not rather clear cut. However indications from the market expect the hike to have 83% chance.
Mergers and acquisitions which have fueled the local market over the past year are likely to dry up by as much as 15% in the short term.
On a more optimistic note, Asia continues to be a darling leading the global economic drive for the remainding half of the year. Despite the market plunge worldwide economic outlooks remain positive and this could be the chance for bargain hunting for some decent stocks, but with reasonable consideration to risks. It is always there.
Common sense and economics do matter.
Here is a snapshot of the world major indices on Friday closing:
ASX S&P 500: -2.81%;6,082.900 (-175.600)
DOW: -1.54%; 13,265.47 (-208.10)
NASDAQ: -1.43%; 2,562.24 (-37.10)
FTSE 100: -0.58%; 6,215.20 (-36.00)
NIKKEI 225: -2.36%; 17,283.81 (-418.28)
SHANGHAI SE COMPOSITE: -0.03%; 4,345.36 (-1.10)
Primary concern now is the prospect of the a US economic slowdown which could depress world economic conditions while US banks are also under the spotlight, naturally, driven by the bad credits, all on the background of a rather reasonable healthy economic growth in the US.
Private equity activities are not spared either as leveraged buyouts will be under increasing scrutiny.
On the local front, the ASX S&P 200 index lost 3% but in addition to the imported concerns from US, the market would likely to be on the sideways in anticipating RBA decision on interest rate rise next week. The possibility is there but signals given by the economists are not rather clear cut. However indications from the market expect the hike to have 83% chance.
Mergers and acquisitions which have fueled the local market over the past year are likely to dry up by as much as 15% in the short term.
On a more optimistic note, Asia continues to be a darling leading the global economic drive for the remainding half of the year. Despite the market plunge worldwide economic outlooks remain positive and this could be the chance for bargain hunting for some decent stocks, but with reasonable consideration to risks. It is always there.
Common sense and economics do matter.
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