The value of ASX-listed stocks, as measured by the All Ordinaries Index, fell 2.2% during May. Other major markets also fell during the month including Japan down 1.6%, the US down 1.4%, the UK down 1.3%, Singapore down 0.4% and Hong Kong down 0.2%.
May 2011 marked the one-year anniversary of the ‘flash crash’ in the United States. The ‘flash crash’ coincided with significant volatility in world markets as uncertainty about debt problems in Europe raised questions about the impact on global growth prospects. This volatility, combined with sharp falls in equity valuations, helped drive a significant spike in trading activity in May 2010. This needs to be considered when comparing growth in activity levels with the corresponding period last year.
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