Friday, September 5, 2008

Crash at Wall Street

Yesterday, there was a major crash at Wall Street and it seems that the experts did not seem to know the reason behind it. As a result, there was a major sell-off in Asia and Asian indices fell heavily across the board. The Bombay Stock Exchange in India fell 415 points. Hong Kong's Hang Seng index fell and breached 20,000, which is the lowest in seventeen months. It seems as if the economists expect the United States to have lost another 70,000 jobs last month. There are still fears of recession in Europe. Interestingly, this fall in the Wall Street came yesterday even as oil prices fell. Usually, a fall in oil prices leads to a rise in stock prices. So, the movement in the markets yesterday was somewhat perplexing. It seems as if the markets are still trying to find their bottom and they don't seem to have stabilized anywhere at all, despite some rally in stocks that we saw in the eight weeks or so. Oil has certainly fallen from its peaks but the stocks would still need another booster dose to get fired up. This also means that any rise in oil prices could have a rather debilitating effect on the stock markets worldwide, especially with the depressed market sentiments.

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