Is the ASX affected by American markets?

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

mikeyboii64 said:

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

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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.

mikeyboii64 said:

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

Click to expand...

"After a lead from Wall Street ... "

It is the largest economy on the planet!

So_Cynical said:

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

Click to expand...

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,



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

Trembling Hand said:

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

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Meant the S&P500 - so what's the ticker for that?

So_Cynical said:

Meant the S&P500 - so what's the ticker for that?

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try SP500.id
depending on the data supplier of course
Iress deliver it as SP500.ID: