Monday, October 22, 2007

All eyes on Wall Street and Fed now

Ng Jun Sheng from SBB Securities said that global investors are reminiscing this week about where they were during the 1987 crash, in which the Dow plunged 22.6% on 19 Oct. The combination of circuit breakers instituted by the NYSE, and the Federal Reserve's willingness to intervene, means a crash on the level probably will not happen again. But that doesn't mean the market will not experience mini-crashes that crush investors and roil the markets for days or even weeks at a time. As investors looking to recoup from the worst week in almost three months will have to keep one eye out for signs of weakness in the tidal wave of earnings and some key economic release due this week as well as the threat of surging oil prices and geopolitical risks.

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