Business Services Industry
Forget Shanghai, watch the US.
Australasian Business Intelligence, March, 2007
Byline: David Bassanese
Mar 04, 2007 (The Australian Financial Review - ABIX via COMTEX) -- On 28 February 2007, the S&P/ASX 200 recorded its biggest one-day drop since the 2001 US terrorism attacks. While the 2.6 per cent decline in the benchmark index unsettled many investors, it probably does not signal an end to the four-year bull market. A pullback was overdue after the recent strength of global markets. Markets were affected by concerns about the Chinese economy and comments by the ex-head of the US Federal Reserve, Alan Greenspan. Shane Oliver, of AMP Capital, notes that the nine per cent plunge in China's share market on 27 February 2007 does not reflect the state of China's economy. The US economy should be viewed as a bigger concern.
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