Monday, December 20, 2010

US stock market is the world's worst predicts global economy at the end of the second exploration?

In the current world economic situation, in particular through centuries one of financial crisis after the baptism, the international community is generally accepted that the United States, the EU and China's three major economies represent economic trends in the world today. These three major economies, economic development, how to directly impact on the world economy, directly threatened world economic trends. While the observation of changes in the economic development of an important indicator is the stock market, stock market is an economic concentration reflect and barometer. Signs of the current global financial crisis is to take the lead from Wall Street markets erupted, direct line from the Dow Jones index, discharge start is also almost from the Wall Street stock market crash was informed that the financial crisis has suddenly descend. Then, recently, three major economies, economic conditions? we observe from the stock market performance.

Recalling the first half of the market trend, China A-share out of the wave after wave of continuous quotations. As of June 30, closing, Shanghai 26.82% decline, falling by 31.48 szse% refers to A stock market value, "evaporation" 2.5 trillion (July 2, Xinhua).

United States Wall Street Journal's Web site says, the first half of this year, Shanghai is the worst of major stock markets and the global performance of the worst stock market. Of course, poor health, not only is China A-share market in the first half of the United States is also very bad, just past the second quarter is the Dow Jones industrial average stock price index from 2002, the worst of the second quarter. Dow Jones index not only break 10000 point mark, and July 2 Japan week last trading day of addressee 9686.48 points.

Of course, China A-share to become the world's worst of the worst, even better than a sovereign debt crises of Greece. However, in September 2008 when the global financial crisis, the Wall Street stock market yixieqianli, China A-share is relatively stable. This may be the u.s. stock market bottom and the differences between the financial crisis. The two largest economy stock markets to become the world's worst is heralded in the global economy will be at the end of the second exploration? we might see some economic indicators. United States latest published some of the key economic indicators of the global collapse of the glasses, the United States, the unemployment rate remains high, so far no signs of United States-consumer confidence index declined significantly in the recent sudden. Consumption is the real engine of the United States economy, consumption index fall in consumer confidence, on the one hand, the description is insufficient, on the other hand indicates the United States economy engine is slowing down.

Although China is "excellent landscape", however, the economic slowdown concerns are revealed. Chinese PMI index are ring for two consecutive months, the Chinese than decline on a large scale investment risks are exposed, investment pull is very unrealistic; China's domestic consumption subject to income levels, the social security system, not a moment to start, you need a long-term process. China export this troika has serious problems. Originally the European sovereign debt crisis has resulted in the appreciation of the Renminbi against the euro, 20% on the export of impact is very large. Shortly afterwards, a new round after restart, from June 19, since only 10 trading days, from the Trade Center's latest data show that on 2 July the Renminbi against the US dollar exchange rate in the middle price reported $ 6.772 compared with the previous trading day rose 138 basis points, surpassed 6.78 element integer. Subsequently, the Renminbi against the US dollar only, but also to the euro, Australian dollar, Canadian dollar and other currencies full appreciation. In July 2005, the Renminbi exchange rate regime only against the dollar, this time on almost all the developed economies currency appreciation of Chinese exports overall corporate profits mainly cheap labour that little, very low. RMB to world's major developed economies monetary full appreciation can be said that to approximation of a blind alley of export-oriented enterprises. The Renminbi appreciation than last RMB to China's export of combat to.

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