Monday, August 31, 2009

China stocks tumble causes ripples (September Effect)

Shanghai Stock Exchange (SSE) dropped 6.7% to 2,697.70 breaking the support level 2784 points.

Hong Kong's HSI lost 1.8%
Germany's DAX fell 0.7%
France's CAC down 0.6%
London Stock Exchange (Closed for public holiday)
Tokyo's Nikkei lost 0.4%

The ripples been sent throughout markets in Europe and US, with Wall Street futures opening lower. Dow industrial futures -65points, and S&P 500 futures down with 5.9%.

Fears arise on the capability of China to sustain stimulus-fed growth rates and the global economic recovery would not last.

Is it the beginning of new phase - September Effect ?

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