Correlation between Australian and U.S. Industries?

[Dominover]

Is there any correlation between Australian and U.S industries in terms of their business cycles?
For example, if the U.S widget manufacturing industry starts to perform, then does the Australian widget industry follow?

Thanks

 

[over9k]

Generally speaking, yes. In fact it's true of the whole market - America sneezes, and Australia (the whole world) catches a cold.

 

[Smurf1976]

One exception I'll note is natural gas.

It's a regional commodity not a global one and it's entirely possible, has actually happened in the past, to have a price boom in one region and a crash in another at the same time.

That comes down to the infrastructure required, and the cost of it, to move the stuff from A to B. Liquefaction plants, pipelines and gas carrying ships don't come cheap.

Versus most other commodities which can be moved using any cargo ship, train etc and have a similar value just about anywhere on earth. Gas is an exception to that so it's a sector where, if investing, you need to make very sure what data you're looking at and where it relates to.

 

[qldfrog]

Australian what?