THE growing importance of emerging markets was illustrated dramatically this week as a sharp drop of 8.8 per cent in the Shanghai stock market on Tuesday triggered worldwide falls in share prices.
Wall Street fell 3.2 per cent, its biggest drop for nearly four years, while the UK’s FTSE 100 index shed 148 points to 6,281 a loss of 2.3 per cent. Markets in Japan, Hong Kong and Europe all suffered in the worldwide sell-off.
Weak US economic data and investor nervousness kept shares in the UK and worldwide on a rollercoaster all week. But what should UK private investors make of this week’s turbulence? Does it signal the end of a four-year global bull run or is it simply a much-needed correction?
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