FINA1003 project

FINA1003 project - 1) the history of those US events and...

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1) the history of those US events and potential effects on the BRIC countries 2) the details of the stock indexes: DOW30, SSE (china), IBovespa (Brazil), RTSI (Russia), and BSE(India). . such as the industries, when they started, etc 911 – to US: threatening its global leadership 17/9, DOW plunged 684.81 pts after 911 attacks The immediate impact of the 9/11 attacks was on the industrial, corporate and financial sectors especially in developed countries - China : opportunity to increase its global influence, mainly due to the reduction of capital flow - Brazil: Rio treaty, not as great as expected, mainly due to the reduction of capital flow - Russia : not great influence, mainly due to the reduction of capital flow - India : not great, mainly due to the reduction of capital flow The September 11 attacks were a series of coordinated suicide attacks by al-Qaeda upon the United States on September 11, 2001. The attacks had a significant economic impact on the United States and world markets. The New York Stock Exchange (NYSE), the American Stock Exchange (AMEX), and NASDAQ did not open on September 11 and remained closed until September 17. When the stock markets reopened, the Dow Jones Industrial Average (DJIA) stock market index fell 684 points, or 7.1%, to 8921, a record-setting one-day point decline. By the end of the week, the DJIA had fallen 1,369.7 points (14.3%), its then-largest one-week point drop in history, though later surpassed in 2008 during the global financial crisis. U.S. stocks lost $1.4 trillion in value for the week. This is equivalent to $1.69 trillion in present day terms. The attacks led to a loss of confidence of the investors in the world markets, leading to a decrease in capital flow to the US. Such decrease also adversely affected the capital flow of the BRIC countries. However, since the attack threatened the global leadership of the US, China has sought an opportunity to increase its global influence. The
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Brazil government at that time also reduced its connection with the US by signing the Rio Treaty. Therefore the adverse effect of the attack was not as great as expected. The economy of India and Russia were also not affected greatly as they didn’t have much connection with the US. The effect was mainly due to the reduction of US capital flow. IT bubble was a speculative bubble covering roughly 1998–2000 (with a climax on March 10, 2000 with the NASDAQ peaking at 5132.52) during which stock markets in Western nations saw their equity value rise rapidly from growth in the more recent Internet sector and related fields. While the latter part was a boom and bust cycle, the Internet boom sometimes is meant to refer to the steady commercial growth of the Internet with the advent of the world wide web as exemplified by the first release of the Mosaic web browser in 1993 and continuing through the 1990s. A combination of rapidly increasing stock prices, market
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This note was uploaded on 04/26/2010 for the course FIN FIN4160 taught by Professor Prof.chow during the Spring '09 term at CUHK.

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FINA1003 project - 1) the history of those US events and...

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