Around the World in 24 Hours

Wednesday, February 28, 2007 | 04:48 AM

Three interesting follow ups to Tuesday's messy trading: 

First off, computer errors didn't cause the sell off -- they only delayed the reporting of the trades.

If anything, these delays made the sell off look more orderly than it really was. Contrary to what you may have read elsewhere, the glitch only made the selloff look more mild (orderly and less severe) until it turned more wild as the delays spooled out and unwound. I have seen several early news reports and comments that got this exactly ass backwards.

Anyone who will uses this as a false excuse for Tuesday is a weasel.

The graphic below does a very good job explaining the situation:


Chart courtesy of WSJ


Secondly -- and this is more along the lines of our earlier "Don't Blame China" discussion, go check out the interactive map at the WSJ (its free).

Scroll over any country, and you get their Bourse performance for Feb 27th.

click for interactive global bourse map

Map courtesy of WSJ

If China was the root cause, why was most of the Pacific Rim down so mildly?

Malaysia and Singapore got tagged pretty good, but the rest of Asia was off between 0.5% and 1.5%. Korea and Japan, arguably the most important countries economical in the region with China, were down mildly.

If China was to blame, why then such a mild response in her own backyard? Here are the closing numbers for 2/27, with China down 8.8%:

Australia -0.74%
Hong Kong -1.76%
India -1.25%
Indonesia -1.12%
Japan -0.52%
Malaysia -3.09%
Pakistan -0.14%
Philippines -1.44%
Singapore -2.29%
S.Korea -1.05%
Sri Lanka -0.53%
Taiwan 0.02%
Thailand  -0.69%

Note that the European countries were down much worse than Asia -- particularly after the US economic data was released.  Most European Bourses opend down 1% to 2%, and then saw their selling accelerate after 8:30 US time.

Lastly, note that Japan opened down 700 points on 2.28.07. Did it take them 24 hours to figure out what happened in China, or might it have been intervening events?

click for live Nikkei chart

Map courtesy of Yahoo!

Lastly, check out the Asian markets as of 2/28/07. As of late last night, they were pretty ugly

click for updated prices:
Table courtesy of WSJ


After a Rough Morning, A Data Backup Jolts The Blue-Chip Average
WSJ, February 28, 2007

Markets' Slide Spotlights Risks
Chinese Shares Tumble, And Investors Reassess
U.S. Economic Outlook Fleeing to Safe Treasurys
E.S. BROWNING and CRAIG KARMIN in New York, and JAMES T. AREDDY in Shanghai
WSJ, February 28, 2007

Stocks Slide World-Wide
Global Map
WSJ, February 27, 2007

Yahoo! Finance, Feb 27, 2007 10:58pm EST^n225;range=1d;

Wednesday, February 28, 2007 | 04:48 AM | Permalink | Comments (24) | TrackBack (1) add to | digg digg this! | technorati add to technorati | email email this post



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» The Great Glitch Story Not Getting A Great Reception from
Some of the wiser voices on the internets are pointing out that the Great Glitch story-line doesn't exactly pass the smell test. Eddy Elfenbein at Crossing Wall Street says: One more word about yesterday: The sell-off was not caused by... [Read More]

Tracked on Feb 28, 2007 2:07:05 PM


hi barry,

here are more charts and especially some cartoons that describes what happened and will happen. :-)

Posted by: jmf | Feb 28, 2007 5:13:28 AM

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