News

Global markets in worst year since 2008

Global markets in worst year since 2008
Business
Big European and Asian markets faced similar losses in 2018, while the main US indexes saw their worst performance since the 2008 financial crisis.

US-China trade woes and slower global growth are among issues blamed for the poor showing.

Analysts have also cited US political uncertainty and interest rate rises as contributing factors.

As the year ended, caused by President Donald Trump s determination to secure funding for a wall on the Mexican border to tackle illegal immigration.

Mr Trump has also regularly rattled investors during the year by escalating his tit-for-tat trade tariff battle with China . Earlier this month, both sides agreed to suspend new tariffs to allow for talks.

The president has also been at odds with the central bank, the Federal Reserve, over whether interest rates should be increased.

At the same time, Europe has been rocked by political setbacks including Italy s budget row with Brussels, the waning authority of German Chancellor Angela Merkel, the "gilets jaunes" protesters in France and, of course, Brexit.

Although sizeable in historic terms, the US stock market falls were smaller in scale than those seen elsewhere, arguably in part because of the economic stimulus provided by the Trump administration s $1.5tn , passed in December 2017.

In Asia on Monday, Hong Kong s Hang Seng closed almost 14% down on the year, while the Nikkei fell almost 15% in 2018 and China s Shanghai Composite (SSE) saw a whopping 22% annual decline.

In some territories, shares saw a modest upturn in thin New Year s Eve trading, boosted by optimism over the latest twist in US-Chinese trade relations.

Investors drew some comfort from the latest comments by Mr Trump, who tweeted that he had had a "long and very good call" with Chinese President Xi Jinping and that a possible trade deal was making good progress.
Read more on bbc.com
News Topics :
Similar Articles :
World
US President Donald Trump s trade war with China is failing to hit the Chinese economy, according to his former chief economic adviser. The tit for tat tariff battle was a very...
Business
The Chinese echoed the optimism, with President Xi Jinping touting substantial progress, according to the Chinese state news agency Xinhua. The US and China have been in talks since December...
Business
It remains uncertain how the two sides will resolve underlying US concerns over trade barriers, subsidies and alleged technology theft. Despite the questions, US President Donald Trump was in an...
Business
Global stock markets have steadied amid hopes that the US and China will resume talks next month, following an escalation in their trade war. On Monday, China announced tit for tat tariffs...
World
WASHINGTON/BEIJING/SHANGHAI Reuters U.S. President Donald Trump on Tuesday dismissed concerns over a protracted trade war with China, as Beijing warned that Washington’s decision to label it a currency manipulator...