Australian (ASX) Stock Market Forum

Is the ASX affected by American markets?

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Hello, my name is Michael. I'm a first year finance student with a discussion among friends regarding what would happen to the ASX if americas market fell.

Is the ASX actually affected by americas markets? if for example a 9/11 happened again to all the markets in america; what would happen to the ASX?

I've been told it all goes through america but that makes no sense to me, is America the central market of the world or simply the business centre.

Thank you and I look forward to lurking and learning from this forum :)
 

So_Cynical

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Hello, my name is Michael. I'm a first year finance student with a discussion among friends regarding what would happen to the ASX if americas market fell.

Is the ASX actually affected by americas markets? if for example a 9/11 happened again to all the markets in america; what would happen to the ASX?

I've been told it all goes through america but that makes no sense to me, is America the central market of the world or simply the business centre.

Thank you and I look forward to lurking and learning from this forum :)

Hello Michael, welcome to ASF

Simple answer is YES.

Bang up a comparison chart of the XJO and the SPI, you will see that broadly they move together.
 
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Hello, my name is Michael. I'm a first year finance student with a discussion among friends regarding what would happen to the ASX if americas market fell.

Is the ASX actually affected by americas markets? if for example a 9/11 happened again to all the markets in america; what would happen to the ASX?

I've been told it all goes through america but that makes no sense to me, is America the central market of the world or simply the business centre.

Thank you and I look forward to lurking and learning from this forum :)

"After a lead from Wall Street ... "

It is the largest economy on the planet!
 

Trembling Hand

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Bang up a comparison chart of the XJO and the SPI, you will see that broadly they move together.

:confused: I think you have something a miss here. The SPi is the futures for the XJO, they are the same thing.

As to the thread topic its a yes and no answer. On the big themes we generally are locked with all markets. It is, in a simplistic way, one big trade. You often hear a term "risk on -off"

So often the media like to beat up what the US does but capital is global and virtually 24hr market. Short term moves can start in any market, Asia, Europe, US, FX land, commodities, bonds etc and flow on to other markets.

At the same time when a big theme hits, for example QE in the main markets, it can effect all markets but to differing degrees. You can see this by the comparison to Australia's S&P200 (XJO) to the US S&P500,

XJO to S&P500.gif

http://www.marketwatch.com/investin...=50&lf=1&lf2=4&lf3=0&type=2&size=2&style=1013
 
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