It doesn't make sense any more that the Australian Market should mirror the DOW, as Michael Pascoe sees it;
(My Bolds)Standard & Poor’s states the bleedin’ obvious about the US deficit and political paralysis, Wall Street acts surprised for reasons best known to itself and our market opens with a tumble. No, it doesn’t really make sense.
But the ASX slavishly following Wall Street’s mood hasn’t made sense for quite a while now. The encouraging news is that there are signs that we are beginning to do so a little more selectively. Increasingly, the morning forecast that “the Dow dropped last night, so our stocks will fall today” doesn’t necessarily hold true by four o’clock that afternoon.
It’s a slow process, winding back generations of unthinking faith in the almighty power of US economy in the first instance and the dominance of the New York Stock Exchange in the second – one exchange to rule them all.
The relative deterioration of the former is a matter of record – Australia is part of the Asian economy now, not the North Atlantic, with little correlation between our economic performance and that of the US. The latter’s grip on global investment sentiment is harder to shake, even when the world’s most quoted equities barometer – the Dow Jones Index – is acknowledged as an unrepresentative basket of just 30 stocks occasionally given to manipulation.
Read more: http://www.smh.com.au/business/wall-...#ixzz1Jx8VXV9c