On 11 November 2008, Asian markets were seen sharply up and deep within the green zone after China, the world’s fourth largest economy, according to Xinhua news agency had approved a hefty 4 Trillion Yuan or 586 Billion dollars to stimulate the economy. The amount is largely going to be put on social projects and infrastructures.
G20 is coming now and China pledging such a big amount into the economy had made the world markets cheering and set directly into buying mood. Shanghai Composite Index, SSE, the main bourse for China had led by example advancing by 7.27 percent to end its losing streak for many weeks that I have lost count. Hong Kong’s bourse, Hang Seng Index too had a decent gain of more than 3 percent. Straits Times Index, the bourse for Singapore however, only managed to get a gain of just 1.16 percent. Sensex, the bourse for India however did managed to get a gain by 5.74 percent.
Asian markets had also sparked buying in Europe as FTSE closed slightly up by 0.89 percent. The earlier sharp gain were quickly erased by the sentiment going on in the Wall Street. Dow Jones Industrial Average Index, DJI was seen in the red slighly more than 1 percent after nervousness sets into the mood of investors as they going on to wonder whether are US companies able to withstand the impact of spending pullback by consumers.
Though, Wall Street is rather nervous right now during this time of post. I am rather certain on the back of the G20 and China’s effort in stimulating world economy, it is likely that investors will do a late buying up as the price now are still considerably cheap and attractive in the long run.
The above are of personal opinion and never at all, an inducement to trade.
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