After 2018 was recognized as the worst for global stock markets in the last 10 years. The new year began with the same fears associated with a slowdown in economic growth as heightened trade tensions and rising interest rates that held markets back for most of the second half of last year.
The first negative news of the new year was the December business reviews from around the world and the news that the manufacturing sector in China declined for the first time in 19 months. As a result, the Shanghai stock market lost more than 1 percent and the Hong Kong market lost almost 3 percent. At the same time, the Nikkei in Tokyo was marked by growth but on the contrary, further strengthening of the safe yen does not cause questions. Given that markets currently do not expect an increase in interest rates in the current cycle, the Fed has indicated at least two more approaches while the dollar has remained in the red since the end of last year. The dollar against the yen updated the annual minimum of 109 yen. The dollar index DXY also turned out to be lower and the euro rose to the level of 1.15 dollars for the first time since the beginning of November.
The US currency and stock market are under pressure from domestic political problems. Washington can not solve the issue of stopping the work of the Federal Government caused by the confrontation of the White House and Congress. If we add to this the aggressive stance of Washington's trade hawks, who are not ready to give relief to China despite the president's desire to make a deal and calm down financial markets, t the signals about economic growth remain grim.
The material has been provided by InstaForex Company -
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