Michael

Yesterday I saw that the stocks in the US went down. What was cited for this was stocks or business overseas such as China and I am not sure if Europe as well. For those of you who are business buffs or know a thing or two about the market, does this affect the exchange rate between the US and Europe at all?

Centurion

I heard about it too Mike, but since I don't have a TV at the moment I haven't been able to follow up on the story.

NarutoRamen

Yeah, I saw that yesterday. Actually I wasn't surprised for even a second by it because this was seen coming from miles away...just didn't know what day it will arrive. It definitely affected the exchange rate and from what I can see it leaned in favor of the Europeans because the Dollar fell against the Euro, B-Pound and the Yen.

notic

China drives the bus now...

Michael

lol. Well, I guess China has been driving the bus now for quite some time. We just saw it first hand this time.

SDNR

China is very important ....but lets not get carried away just yet ...the USA is still the world's biggest economy.

Centurion

Can someone fill me in on why the Dow Jones plunged.

SDNR

US stocks: Wall Street in a tailspin

US stocks tumbled on Tuesday, sending the benchmark S&P 500 index to its biggest one-day slide in more than 3-1/2 years as a sell-off in China's equity market fanned worries that stock valuations there are too high and some data indicated US economic growth may slow.

With an hour left to trade, the Dow Jones industrial average fell more than 500 points. But within minutes, the Dowcut some of that loss by more than 100 points. Traders said the late-hour slide may have been precipitated by programme trades heading toward the close.

"As the afternoon has progressed, there seems to be a sense of panic among some professional investors. There's talk about margin calls," said Andre Bakhos, president of Princeton Financial Group in Princeton, New Jersey.
"There seems to be just an air of nothing is safe anymore, there's nowhere to go and people are rotating into bonds as a safe haven."

The Dow Jones industrial average was down 376 points, or 3 per cent, at 12,256, recovering from its drop of about 4 per cent at around 3 p.m. The Standard & Poor's 500 Index was down 46 points, or 3.14 per cent, at 1,403.79. The Nasdaq Composite Index was down 84 points, or 3.37 per cent, at 2,420.22.

BTW LU, nice avatar

Mr. M

For the same reason, the Singapore Stock Exchange dropped by the largest percentage not seen since 1987.