The US stock market declined, the global economy is at a standstill

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On the eve of the stock markets of the USA well sank – S&P 500, Nasdaq and Dow showed the largest three weeks intraday fall. Investors already feel uncomfortable, and news out of Washington delivered an additional blow to the stock. There were reports that the administration has rejected trump’s offer to Beijing to hold preparatory meetings before high-level talks scheduled for next week. Later, these conversations are denied economic adviser to the White house Larry Kudlow, but investors still felt something was wrong.
Meanwhile, the US government still has not resumed full operation that begins to disturb the markets, which fear the consequences of a prolonged shutdown on the economy. These consequences primarily affect the indicators of confidence and sentiment, which remain a bright spot in the us statistics.
If we talk about economic data here continues to show fresh signs of decline in the growth rate of world GDP. In December, sales of homes in the U.S. has not met even the most pessimistic forecasts and fell by 6.4%, reaching the lowest in three years. In annual terms the index fell by more than 10% for the first time since 2011. In Japan, exports and imports also missed expectations. Moreover, exports fell by a maximum of more than two years. Fitch ratings today affirmed Japan’s rating at ‘ A ‘ with a stable Outlook, but warned that without effective reforms aimed at stimulating growth and resolving the problem of public debt, the rating could be downgraded in the future.
Nathan Lambert
Head of research,
Global FX