Why did stock markets fall?
Financial markets on Friday fell. The reasons for this have accumulated enough. As we wrote earlier, at the end of December – early January at 2 828,28 888,82 and 2 points on the index of wide market there was major resistance and target range to exit risky assets. So Friday was an expected event.
To explain this, we must mention the risks of the economies of the European Union, and also about the risks of cross-border transactions between the US and China, which can both parties to be profitable. On the monitors punters there are signs of a General recession in the U.S. economy in the form of a formed inversion on major debt instruments. But if it happened again, then the United States is really the problem. Usually a recession in the us economy occurred after an average of 311 days after inversion in the debt capital market. The old-timers of the financial markets remember that it was in 1990, 2001 and 2008-m years.
The markets of Southeast Asia and the Pacific region today are under the yoke of sales. A mass exit of global investors from risky assets can become a dominant trend on the block. The movement may be formed in the end of the first quarter and last until the end of the first half. Markets are very close to the point where you should rethink the situation.
Therefore, almost the whole week we would think about internal and external factors which lay here and now the basis for trends.
Head of analytical Department,
“International financial center”