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A New Proof That China Is Sinking(0)
The financial results of the global equity markets that ended the third quarter show some worrying signs with regard to the economic crisis. The NASDAQ fell by 2.6%, Dow by 2.2%, and S&P 500 by 2.5%. These results show that the worldwide economy is not going to recover ground too soon. Moreover, this situation relates to the activity of all sectors, although specific companies have shown some great financial results. Among the companies that registered some substantial increases for the third quarter are Wal-Mart, Merck and JNJ. However, the commodity trading revealed an important fluctuation, which related to gold, which rose with $5/ounce, and oil that went down by 4.2% at the end of this quarter. The trading was very instable within the grains sector too. This way, it showed low results for wheat, corn and soybeans, which registered important decreases between 4% and 6%. As well, it seems that copper will maintain its down trend during the upcoming period. The reason for this is because it also closed the third quarter with low quotations, sinking 12 cents per pound. Within the currency trading, U.S. dollar has gained ground against pound, yen, euro, Canadian dollar and franc during the same period. Therefore, the U.S.’s economy has just marked a good end for the previous quarter. However, it seems that China is still losing ground. Its FXI index showed a 6.3% decrease at the end of September. Moreover, the forecasts seem to maintain the same unfavorable trend, which comes along with high inflation indices that are definitely able to destabilize the economy of China.
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