NYSE Composite Index Falls on China Nerves
The second half of last week saw the NYSE Composite Index climb from 10,915.30 on Tuesday to a high of 11,044.72 on Friday. However, it fell sharply at the beginning of this week and is currently just above the 10.890 level.
The market was boosted by Alibaba’s initial public offering, the largest ever for a tech company. But the fall came after China’s finance minister suggested that the country will not increase stimulus measures and US housing data fell short of expectations.
China is due to release its manufacturing data this week and while positive data isn’t expected, if it is more disappointing than predicted it is sure to have a knock on effect. However, all the signs indicate that the US economy is in good shape and this is likely to prevent the index falling much further.