stock markets

[justineo]

What actually happens to the stock markets, after something like this morning in London, happens.  It it simply that confidence in the british market goes down.  Anybody explain? ta

[MargeB]

Trading volumes lower because people can't go to trade.

Faith in overall market weakens because..........Market based on business, business relies on OIL price being reasonable, oil price being reasonable relies on supplies being sufficient, supplies being sufficient relies on stability, bombs mean lack of stability.

That's how it works.

[justineo]

thanks Marge, I'm still laughing from your reply to "Chickens"

[MargeB]

lol, yeah, i just loved that question. No bs, no mucking around. No verb.

http://news.bbc.co.uk/1/hi/business/4660227.stm

[jno]

stock market indices always jump up and down after events like this but usually sort themselves out - after a week or so, I'd expect the FTSE index (the main UK one) to be pretty much back where it was unless anything else big has happened in the meantime. Nothing has changed the country's economic strength - after all, the USA is tied up in an apparently endless war and it hasn't affected Wall Street all that much. What does affect markets, as MargeB says, is oil prices - but what's driving them up is the fact that China is industrialising big time, and buying lots more oil to do it with; demand pushes prices up.

So - yes, confidence in the British market has gone down, but I would expect it to return soon; nothing has happened to alter economic fundamentals.

[silly moo]

where is the funny chickens Q & A please ?

[justineo]

(science)

[Andy008]

A lack of confidence will rattle the market. No permanet damage will be done. The fundamental idea of terrorism is to create terror, rather than long term physical damage.