Abstract:
In this paper we will discuss about the effects of the US Subprime Mortgage crisis on the global market. The crisis has hit the Asian as well as the Australian market . The effect on the European market is nominal.
The US Subprime Mortgage crisis has sent ripples all over the world. The effects of the crisis is given below.
The Asian market has witnessed a massive sell off. But the European market has not suffered a lot from this crisis.
It also has hit the stock market of Australia, Germany and Thailand.
Since the housing bubble burst in US the underlying mortgage defaults have increased which affected adversely the global market.
In the Great Britain, the stock market experts have failed to realize the underlying faults.
One of the giant of Australian financial service, Macquarie Bank, have declared that the investors may loose 25% of their money.
The Nikkei stock average in Japan have decreased by more than 2%.
In Germany, France and Britain major indexes have fallen down, but by less than 2%.
The IKB Deutsche Industriebank, a small Bank in Germany, have got a hit by reason of the mortgage crisis.
Australia and Hong Kong's benchmark indexes have fallen down by above 3%.
South Korea's key index has dropped by 4%.
The First State Investment has withdrawn all its share from the Asian financial market.