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[RT] RE: RE: Correlation of international markets?



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What I find funny is how the politicians and market bigwigs
in virtually all world markets (particularly Europe) like to
proclaim that they make their own "beds" and are not
influenced by what happens in the USA.  But the reality
certainly appears to be different.  When the USA goes down,
the rest of the world follows.  When the USA stabilizes, the
rest of the world will also follow.  Just watch the earlier
openings on Monday for corroborating evidence...

JW

-----Original Message-----
From: listmanager@xxxxxxxxxxxxxxx
[mailto:listmanager@xxxxxxxxxxxxxxx]On
Behalf Of Rakesh Sahgal
Sent: Friday, April 14, 2000 4:04 PM
To: realtraders@xxxxxxxxxxxxxxx
Subject: [RT] RE: Correlation of international markets?


About the other Asian markets I don't know, but here in
India when almost a fourth of our FX reserves comprise of
overseas fund managers inflows, we get the jitters every
time the NASDAQ or the DOW sneeze. We had been closed Friday
and my bet is come Monday we shall see a lot of stocks open
LD and stay locked LD because we have a fixed 8% band(both
to the upside and the downside) on prior close.

Rakesh


-----Original Message-----
From:	Gwenael Gautier [SMTP:ggautier@xxxxxxxxxxx]
Sent:	Friday, April 14, 2000 6:38 PM
To:	owen@xxxxxxxxxxxxx
Cc:	realtraders@xxxxxxxxxxxxxxx
Subject:	Re: [RT] Correlation of international markets?

Correlation is less than what the eye says and varies a lot
over time.
European markets are more correlated to the US than Asian
markets, but
mostly on the downside in sharp trends, less so on the
upside...

FWIW

Gwenn


Owen Davies wrote:

> Has anyone done rigorous studies of how closely the
> S&P, Hang Seng, FTSE, etc. are correlated?  How much
> of a change in one it takes to influence the others?
> I know the obvious lore, but it would be nice to have some
> hard statistics.  (And I'm pretty lazy about developing my
> own when someone else may have done the job.)
>
> Thanks.
>
> Owen Davies