G20 plea falls on deaf ears as shares nosedive

The Australian

24/9/2011

http://www.theaustralian.com.au/business/markets/g20-plea-falls-on-deaf-ears-as-shares-nosedive/story-e6frg916-1226144913121

Shares from around the world and in Australia tumbled on the 24th as shares fell again after its horror day on Thursday. Korean shares fell 5.6%, Hong Kong fell 2.2% and even China fell 1.1% in the Asian region, meanwhile in Europe the STOXX 600 fell 4.6% and the S&P 500 also fell 3.2%. The G20 in the possibility of a second financial crisis has stated that it is committed to an action plan of policies to ensure global economic stability by introducing its bailout fund of $605 billion AUD.

However due to the Australian dollar falling below parity with the US dollar it means that stocks with offshore earnings rose, especially BlueScope steel rising 6.2%, but with mining stocks came a fall, with both mining players BHP and Rio Tinto both falling around 3%.

This fall was due to American and European stocks falling, which affects Australian and overseas stocks heavily due to their influence in foreign trade. Australia exports 7.3% of its products to the US and imports 13.6% from America which means that whatever happens overseas is bound to affect Australia. The countries of the EU is another large trading partner (including the UK) but trade has fallen throughout the last couple of years.