Market Loses $20 Billion Amid US Stocks Dip

Some $20 billion was lost today in the local market after US stocks dove last Friday, the lowest performance this year. 

Meanwhile, the increase in the jobless rate in the US from 8.1 percent to 8.2 percent is affecting markets worldwide.  In addition, consumer consumption in the US and China has gone down. 

According to Karara Capital investment manager Robert Walsh, these two are important factors in an economy’s growth. 

In this side of the planet, a recent job advertisement survey showed that the country has a low demand for labour. 

The Australian bond has also gone down two percent due to the slowing economic growth. The Australian bond, however, recovered slightly this Monday morning. 

The week also poses some suspense. On Tuesday, the Reserve Bank of Australia is expected to make a decision on the official interest rates. This Friday, RBA Governor Glenn Stevens will make an appearance in the American Chamber of Commerce in Australia. 

In the stock exchange on today, the Aussie dollar almost lost a half a cent while Japan Topix index took a hit when it fell below the lowest level since 1983. 

In a recent wealth survey done by the Boston Consulting Group (BCG), there is also an increase in personal wealth across Australia by 0.3 per cent and that the number of millionaire households increased from 128,000 in 2010 to 132,000 in 2011. 

As the stocks fall in the Australian Market, the rest of the world is not faring well too:

• Hong Kong: -2.3 percent

• Japan (Nikkei): -2.1 percent

• New Zealand: -1.05 percent

• Shanghai: -1.25 percent

• Singapore: -1.5 percent

Some $20 billion was lost today in the local market after US stocks dove last Friday, which is the lowest this year.