Stock Market Tsunami

Despite Bush's government success in finally getting the congress' vote in approving the US$700 billion bailout plan, equity markets in the US and the rest of the world continue to weaken. The plan was earlier rejected and caused the Dow Jones Industrial Average (DJI) to fall its biggest-ever one day decline, with finance related stocks falling more than 40% on the 29th of Septermber.

On Thursday when the bailout plan was approved, the DJI fell 348 points as investors are not so convinced that the bailout plan would stop the economy from an impending recession, which is doubt by some as could be the worst in American history.

The events that take place in the US has caused a tsunami in the equity markets this week. It's volatility has caused many investors to tremble.

On Friday the DJI fell 157.47 points to close at 10,325.38, lower than the lowest low on the 29th of September. Click here and here for DJI forecast.

Below are the performances of the rest of the markets on Friday;

Singapore ST Index: 2,297.12. Down 66.48 points or 2.8%.
Click here and here for STI forecast.

Kuala Lumpur CI: 1,016.70. Down 9.18 points 0r 0.2%.
Click here for KLCI forecast.

Hong Kong Hang Seng: 17,682.40. Down 528.71 points or 2.9%
Click here for Hang Seng forecast.

Japan Nikkei 225: 10,938.14. Down 216.62 points or 1.9%.
Near support level. Click here for Nikkei 225 forecast.

Thailand SET Index: 590.05. Down 7.64 points or 1.3%.
Click here for SETI forecast.

The China market was spared from the stock market tsunami as it is closed for a week-long national day holiday from 29th September to 3rd October. I believe it is going to open at least 10 lower when the market re-opens on Monday.