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I’m an Indonesian and I am told that my country stock market going down has something to do with US’s stock market going down. Can anyone please help me explain the relationship? Or if this is true at all? Thanks a lot!

One Response to “What is the relationship between one stock market and another foreign stock market?”

1. pgreen on June 1st, 2009 5:09 am

   This is called arbitrage, when stocks get cheaper
   in one market, investors will not buy in another
   unless the price is driven down also.
   There are of course other reasons, the main one
   is that economies are interrelated around the world
   and when an economy is sneezing, the neighbor
   one is in danger of catching a cold.
   Stock markets rise and fall in “sympathy” with
   each other, even stock investors can show love

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