Investment Watch: World Bank comments trigger reasonable stock market adjustment

Zengyongjin, director of the Research Division of Group Yi Securities (Hong Kong), the World Bank cut 2009 Global economic forecasts to 2.9%, shrinking 1.7% from the March forecast, becoming a trigger for a fall in major global stock and commodity futures markets, as one of the current market risk aversion targets, The US Exchange index, which reflects its six main currencies, has rebounded, reflecting the return of funds back to the dollar currency zone, which means that the emerging pressure on the stock and Commodity futures markets is now under way. 　　Ironically, the bank also lowered its forecast for the U.S. economy from March to 2.4%, down to 3%, but the dollar tended to be a beneficiary whenever confidence in the global economic outlook wavered, despite the US economy's slump as the source of the current global recession. The World Bank's pessimistic forecasts of the global economic outlook have triggered a return to the investment market for higher-risk products. However, if the centralized analysis of Hong Kong stocks, the index rose from March lows of 11,345 to June, the high level of 19,162, the cumulative increase of nearly 70%, this wave of waves mainly because the market is looking forward to the U.S. economy will improve the global economy, another part of investors think that the Chinese economy has recovered the concept has also become one of the main factors driving the stock market to rise. In fact, the economic data of the United States were bad and uneven, and the HSI rose to 19,000 levels, Equal to 17 and 14.5 times times the 2009 and 2010 multiples, this valuation can be confirmed by the market, the need for more U.S. economic data to support the market for economic recovery expectations, otherwise difficult to stabilise at 15 times times earnings, coupled with the technical analysis to judge, the index has accumulated nearly 70% of the increase, from the high back to vomit 2, 000 to 3,000 points are normal adjustments.