The Sydney Morning Herald --- Page: 25 : 1 March 2007 Original article by Matt O'Sullivan
ABIX Summary
The Australian stock market fell on 28 February 2007, after an earlier drop on the Shanghai stock exchange. Analysts warned that the sharemarket correction in Australia could go on for a short while, but the underlying fundamentals of the market are strong. Stock exchanges across the globe fell after the rout in China, with contagion spreading. The Shanghai exchange dipped by 9%, but only because of rumours, not facts. It has since regained some ground. The S&P/ASX 200 index dipped by 2.7% to 5832.5 points. The fall in China spooked US investors, especially after the former head of the US Federal Reserve, Alan Greenspan, warned that the nation could face recession later in 2007.
