Economic Growth Worries Pushes Down Stocks In Asia And The US Markets

The growing pessimism among the top executives and businesses about the global economic growth made the US and Asian stock dip further on Tuesday. After China posted their worst economic growth in the last quarter since 2009, Latin America and Europe saw their equity prices hit a low due to fears of an economic downturn. Trading in the US markets was subdued due to a holiday on Monday. In the Asia-Pacific region excluding Japan, the MSCI index fell by 0.5% after it hit a 7-week high. The Chinese shares also saw a drop with the Hang Seng Index of Hong Kong reduced by 0,4% and blue-chip index down by 0. 6%. Nikkei which opened well ended flat while the US stock futures was off by 0.5%. The Australian index also saw a drop of 0.5%.

In the commodities market, the oil prices reduced with Brent down by 14 cents and ended at $62.60 and the US crude futures ended at %53.73 down by 7 cents due to worries triggered by lack of global growth.

In the currency world, the Australian dollar which is used as a proxy for Chinese investments was down by $0.7155 and was the third straight loss this session. The US dollar was at 109.62 against the Japanese currency Yen. The Euro was at $1.1369. The dollar ended against the other currencies at 96.324 DXY. The Sterling fluctuated at around $1.2887 after PM May declined to offer a ‘no-deal’ Brexit.

Adding to the woes of the investors and business partners, the Inter-Nation Monetary fund released its growth forecasts with trimmed predictions. Along with that a PwC survey which also showed that the top executives are pessimistic about the business expansion due to various reasons. The forecast released by the IMF also played emphasis on the difficulties that policymakers face as they are battling an array of political crisis. Though there are many positives to take away in the last few weeks, the risk of slow growth in the global economy is high as the slowdown in China is sharper than predicted, the tussle between US and China over trade and the Brexit ‘no-deal’. There would be considerable uncertainty around Sterling as there is no guarantee as to when the negotiations for the Brexit deal will end and that has made investors nervous. There is a possibility that Britain will leave the EU with no deal in hand.

With the world’s biggest economy China, US, and the UK in turmoil, the market is understandably nervous.

Jay Richardson

Jay Richardson has been a news writer for last five years. He is also an avid trader. Before joining FinanceStead, he was freelance news editor. Jay started in journalism by editing the foremost magazines and then at FinanceStead, he contributes daily news articles on finance industry and helps to others in curating stories.

Read Previous

Dollar On A Two-Week High As Concerns Over Global Growth Rises

Read Next

Google Fined $57 Million In France For Breach In Privacy

Leave a Reply

Your email address will not be published. Required fields are marked *