Tuesday, September 1, 2009

US stock drop after Chinese sell-off:WashPost,Sept.1st

Washington Post, September 1, 2009 on page A8:

China's Shanghai composite index had skyrocketed more than 90% from January through early August, which led some investors to wonder whether the country would help lead the world out of a recessin. But much of that growth seems to have been propelled by massive government lending programs that officials have begun to rein in. Chinese markets have been sliding since early August, and the index plummeted 6.7% on Monday. It is down 2% since August 4, sending China into bear-market territory.

The unease in China weighed on commodities prices in the United States.

"China set the stage for what happened today," said Ned Douthat, vice president of Ockham Research. The two markets are going to be inexorably tied for the foreseeable future."

Such in my rationale in my blogs in the past for Sino-American Economics.

Francis Shieh a.k.a. Xie Shihao, an observer of market fluctuations relative to Sino-American economics on Tuesday,September 1, 2009 at 9.20 a.m.

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