Was just watching CNBC TV18 as I am getting ready to come to work and one interesting discussion that came up on TV was about the reasons as to why the markets world over are falling and 3 main reasons being given are:
- China reducing its stimulus measures which were implemented as part of the recession curtailing measures and debates there on ending the entire stimulus package in China to curtail the excess lending and related concerns.
- Secondly, the macro economic indicators not showing very great signs in the US. (Jobs, industrial production and ?)
- Thirdly, the European crisis of Sovereign Ratings declines in economies like Greece and more concerns from other countries in the Euro zone like Spain, Portugal..
This is leading to US investors primarily moving funds out of the ETFs investing in developing countries like India and China as well, spreading around the global falls that we are currently seeing.
One more interesting observation, was about the second largest province in China in terms of exports, increasing the minimum wage and therefore, it seems “increasing concerns of Global Inflation”!! (I can’t believe this though!)
Anyways, will bring in more updates later..