The favourite topic for us investor hounds and writers of the moment is the weakening global share markets.
New Zealand is always first to react on Monday after the previous Fridays close on Wall Street.
React it did today by falling almost 40 points or 1%. Already down sharply on Friday 10 August New Zealand time our market takes the lead and has no other influence until Australia's ASX opens 12 Noon NZ time.
Today the ASX lead its own way up, Asian Markets followed somewhat and it will be interesting to see what Wall Street does New York time Monday morning 13 August.
The thrust of this piece is really that if you look to the New Zealand market, the NZX, we really have an advantage because when world markets close during our morning hours we have a chance to digest the figures from other regions , make a decision and act upon it when our share market gets going at 10.00am. Perhaps then making more rational and considered decisions instead of the spur of the moment stuff that international bourses tend to respond to.
Of course very few international investors know that New Zealand even has a share market but if they did they would find it an advantage to follow what is going on down here in the respect of investor sentiment in a region that is first to open.
Clearly the NZX doesn't have economic impact but international market watchers need all the information and advantage they can when looking at the impact their own portfolios could have and behave when their markets open the following day.
Recommended Fishpond Reading
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c Share Investor 2007
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