China stock market stumble

It looks like the economic growth juggernaut just had a bit of a set-back. The Shanghai composite index hit a record yesterday and then proceeded to drop 8.8 percent on Tuesday. If this turns out to be a one day stumble then no problem, but if it worsens in the days ahead it could hurt Chinas economy. If we see spill over into lower resource demand that would of course be bad news for Canada.

Emerging markets in Asia also fell, along with European stocks, as the plunge shook investor confidence. Canada’s S&P/TSX composite index fell 196.60 points to 13,207.86, led by gold, energy and information technology stocks. It was the biggest drop since early January.

The move in China also may cause investors to have a second look at other investments that are perceived as risky, Mr. Guatieri said. “It tends to shake confidence. If one market comes unglued, the market will look at other markets that are a bit frothy.”

Update: Markets are down all over, US, Europe and Asia while treasury bonds rally. This is currently the lead story at CNN.

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the pope
the pope
13 years ago

Looks like we've seen a bit of recovery today. The loony took a hit, but Bernanke says everythings ok (sky not falling).

antz
antz
13 years ago

"The wealthy Asians are getting out of equities and into Vancouver residential real estate before the next leg up.Better hurry, we are running out of sky and concrete. 2/27/07 3:43 PM" These 2 live and own million$ worth of properties in Vancouverhttp://tinyurl.com/33ugc8http://tinyurl.com/2m3p4g

quack
quack
13 years ago

Looks like the sun rose this morning. My energy and bond investments are both up, win-win. Hah.Warren, watch out, the sky is falling.

Warren
Warren
13 years ago

Looks like the sun rose this morning. My energy and bond investments are both up, win-win. Hah.

quack
quack
13 years ago

The rush to the safe haven of RE happened after 911, and the ensuing stock market declines. … It also happened in YVR on the heels of the tech stoch decline. However this time its different. and By different I mean RE is now over bought in most markets.No more safe havens.When in danger   or in doubt,Run in circles,   scream and shout.

Jim
Jim
13 years ago

By different I mean RE is now over bought in most markets.

Jim
Jim
13 years ago

The rush to the safe haven of RE happened after 911, and the ensuing stock market declines. (in conjuction with super low rates). It also happened in YVR on the heels of the tech stoch decline. However this time its different.

Alpha_Bear
Alpha_Bear
13 years ago

"The cagey realtors(not that we know of any)could spin this as a good thing."interest rates will stay low, possibly go lower, and with the stock market being volatile, investors will flock to RE""Funny, they're already talking like this over at RET.

quack
quack
13 years ago

The last of the greatest fools will buy the poison.The greater fools are always with us.

realtor88888888
realtor88888888
13 years ago

The cagey realtors(not that we know of any)could spin this as a good thing."interest rates will stay low, possibly go lower, and with the stock market being volatile, investors will flock to RE"The last of the greatest fools will buy the poison.

quack
quack
13 years ago

vancouver real estate giving life to canadian economy.Vancouver RE sucking life out of my personal economy.

digi
digi
13 years ago

I blame Greenspan.

bearette
bearette
13 years ago

Wow … could this be the welcome mat for the official coming out party for the U.S recession?

blueskies
blueskies
13 years ago

one of the problems of being priced for perfection is the discovery there are glitches in reality…..it was suggested that the stock market could very well be the next "bubble"…. hmm maybe nottomorrow will be very interesting

van-realestate-crash
van-realestate-crash
13 years ago

No worries, it's just a simple rotation. The wealthy Asians are getting out of equities and into Vancouver residential real estate before the next leg up.Better hurry, we are running out of sky and concrete.

Londonernow
Londonernow
13 years ago

Just because the TSX is down along with China and the US markets has nothing to do with Vancouver real estate. I'm telling ya' Vancouver real estate is only going up! Buy, buy, bye bye..

satv
satv
13 years ago

sorry its their mindwell we can feel proud atleast vancouver real estate giving life to canadian economy.21 million peoplecity is going to host they are not going to live here.2001 572k 2006 605k 2011 628k that's population of permanents and citizens don't you think we need more construction,other people hard to count them but they are bham.millions of visitor's every year look at vanwest some people learning new bussiness to make residential accomomdation to use daily,weekly basis.and some already started Vancouver considered a leader in sustainable practices.

squidly66
squidly66
13 years ago

maybe you could add ..albertabubble.blogspot.comto your links

Asun
Asun
13 years ago

OT here, but there goes my CPP retirement money. Down the drain, that is.

quack
quack
13 years ago

Last time I checked the S&P/TSX Composite Index is down 3.03%, while the TSX Venture Exchange is down 5.44% … since it opened this morning.

the pope
the pope
13 years ago

Wow. Looks like this has the potential to become a bit worse. This is the top story at CNN right now. The New York stock exchange has imposed trading curbs meant to limit market sell-off.Dow Jones and Nasdaq are down along with European and Asian markets. Treasury bonds rally. Wonder if we'll see a recovery tommorow?

quack
quack
13 years ago

Now when market is stumble they could change there mindWith no money left after the market stumble, they can buy boat fare to Vancouver. We will have 21 million people living here in a failed specuvestor shantytown.Last time I checked the S&P/TSX Composite Index is down 2.38%, while the TSX Venture Exchange is down 3.54% … since it opened this morning.

satv
satv
13 years ago

Real estate is just a part of economy not a heart of economy,this part is doing great in vanbc.Well there was a report last year "because of strong economy in china"chinese people decide to sit back home rather than going somewhere else in the world.Now when market is stumble they could change there mind.There are two markets currently shining Indian economy and Vancouver real estate market I think we have to arange for more kite's flying to Vancouver

the pope
the pope
13 years ago

Thanks to Marco for the link, who points out that since our economy is based on two weeks of winter games we don't actually need to worry about resource markets.