Tuesday, September 1, 2009
Market Reflections 8/31/2009
A 7 percent plunge in the Shanghai stock market, tripped by new concerns that the government will withdraw liquidity from the business sector, reverberated through global markets and the U.S. market where the S&P 500 fell 0.8 percent to just over 1,020. U.S. economic news was upbeat as Chicago purchasers reported no change in business conditions during August, indicating a bottoming in the region's recession and pointing to similar results in this week's ISM reports. Commodities moved with equities with oil closing below $70 at $69.50 and copper falling more than 10 cents to end at $2.84. But gold held firm at $950, firmly underpinned by solid long-term investment demand. The dollar index edged 0.2 percent lower to $78.13.