GhanaStar
  • News
  • Sports
  • Entertainment
  • Politics
  • Business
  • Music
No Result
View All Result
GhanaStar
  • News
  • Sports
  • Entertainment
  • Politics
  • Business
  • Music
No Result
View All Result
GhanaStar
No Result
View All Result
Home News

Asia Markets Join Global Stock Plunge

February 6, 2018
in News
Share on FacebookShare on Twitter

Asian markets plunged on Tuesday as investors dumped stocks following heavy falls in the US in anticipation of higher interest rates.

You Might Also Like

Two People Arrested in Connection with Death of X-Rated American IG Model, Tyger Booty

Ghana’s Parliament Erupts into Chaos as NDC MP whisks away Speaker’s seat

Cedi records highest depreciation against dollar in 36 weeks

Japan’s Nikkei 225 index suffered its biggest one-day point drop since 1990, before recovering.

It comes after the Dow Jones Industrial Average suffered its worst drop in more than six years on Monday.

A strengthening global economy and healthy corporate earnings had spurred world markets to record highs.

But the sell-off began last week after a solid US jobs report fuelled expectations that the Federal Reserve will raise interest rates faster than expected.

“Economic news from the US has been stronger than anticipated,” said David Kuo, chief executive of financial services advisory Motley Fool.

“So, perversely, the market correction has been caused by positive economic news.”

Markets in Asia typically follow the lead from the US.

Elsewhere in the region, Japan’s Nikkei 225 index closed down 4.7%, while Hong Kong’s Hang Seng dropped 4.5% and South Korea’s Kospi index gave up 2.6%. Australia’s benchmark S&P/ASX 200 lost 3.2%.

US stock futures were pointing to more sharp falls when markets open on Tuesday.

On Monday the Dow Jones Industrial Average index tumbled 1,175 points, or 4.6% to close down at 24,345.75.

The decline was the largest in percentage terms for the Dow since August 2011, when markets dropped in the aftermath of “Black Monday” – the day Standard & Poor’s downgraded its credit rating of the US.

The drop on the Dow was closely followed by the wider S&P 500 stock index, down 4.1% and the technology-heavy Nasdaq, which lost 3.7%.

The White House moved to reassure investors saying it was focused on “long-term economic fundamentals, which remain exceptionally strong”.

The heavy losses in Asia track the slide on Wall Street. Investors are reacting to changes in the outlook for the American and global economy, and what that might mean for the cost of borrowing.

In response to that, investors moved to sell out of stocks and put money into assets like bonds which benefit from higher interest rates.

“This isn’t a collapse of the economy. This isn’t a concern that markets aren’t going to do well,” said Erin Gibbs, portfolio manager for S&P Global Market Intelligence.

“This is concern that the economy is actually doing much better than expected and so we need to re-evaluate,” she said.

Analysts say that in the short term, investors should be prepared for choppier stock markets.

Joel Prakken, chief US economist for IHS Markit, predicts share price gains will be limited over the next two years.

“The difference between this year and last year is we’re going to see more periods of volatility like this as the market reacts to higher inflation,” he said.

“We’re just not used to it because it’s been so long since we’ve had a significant correction.”

However, he added that markets would need to deteriorate more significantly for him to start to worry about the broader economy.

Asian markets, on the other hand, have benefitted from record low US interest rates in the last decade because money has flowed into Asia in search of stronger returns. Analysts say the expected rate rises could impact Asia over the longer term.

Join GhanaStar.com to receive daily email alerts of breaking news in Ghana. GhanaStar.com is your source for all Ghana News. Get the latest Ghana news, breaking news, sports, politics, entertainment and more about Ghana, Africa and beyond.

Tags: 201516 Chinese stock market turbulenceaustraliaBusiness_FinanceCapitalismDow Jones Industrial AverageEconomic bubbleseconomyFinancial Information ProvidersGreat RecessionGreat Recession in the United StatesHang Seng 40IT Services & Consulting - NECJoel PrakkenKospiMarket trendS&P 500Social Media & NetworkingStock marketStock market crashesStock market index

Related News

Two People Arrested in Connection with Death of X-Rated American IG Model, Tyger Booty

Two People Arrested in Connection with Death of X-Rated American IG Model, Tyger Booty

by ghanastar
January 2, 2022
0

The Ghana Police Service has announced the arrest of two persons in connection with the death of Julie Diane Williams,...

Ghana’s Parliament Erupts into Chaos as NDC MP whisks away Speaker’s seat

Ghana’s Parliament Erupts into Chaos as NDC MP whisks away Speaker’s seat

by ghanastar
December 1, 2021
0

Ghana's Paliament on Wednesday erupted into chaos with minority and majority members shoving and pushing each other. The heated confrontation...

Cedi records highest depreciation against dollar in 36 weeks

Cedi records highest depreciation against dollar in 36 weeks

by ghanastar
December 1, 2021
0

The local currency is back into free-fall mode against its major counterpart trading currency, the US dollar, as it records...

Meet Paul Mensah – the Ghanaian-Born Engineer Who Led Pfizer Team to Develop COVID-19 Vaccine

Meet Paul Mensah – the Ghanaian-Born Engineer Who Led Pfizer Team to Develop COVID-19 Vaccine

by ghanastar
March 11, 2021
0

Ghanaian-born Paul Mensah is a chemical engineer and the vice president of the bioprocess research and development group at Pfizer...

Next Post

Former Inter Allies Captain Isaac Twum Handed Number 18 Shirt At IK Start

[Infographics] Recap of Akufo-Addo's 2017 State of the Nation Address

Trending News

Emma M’eni Nwu, Emma M’atamfo Nsere Me(Kyere Me W’akwan)

August 20, 2016

Kept By The Power Of God

August 20, 2016

My Hands Are Blessed

August 20, 2016

About

Read today's latest news headlines from Ghana and Africa. Stay up to date on local business, sports, crime, politics, arts, culture, and more.

Categories

  • Africa & World
  • African Music Lyrics Directory
  • Business
  • Business Directory
  • celebrities
  • Computing
  • Diaspora
  • Entertainment
  • Events
  • Feature
  • Featured
  • Ghana Elections 2016
  • Headlines
  • Health
  • International
  • Internet
  • Jobs
  • lifestyle
  • Music
  • News
  • Offbeat
  • Opinion
  • Politics
  • Profiles
  • Religion
  • Security
  • Seth Terkper
  • Smart Home
  • Social Networks
  • Sports
  • Technology
  • Top Stories
  • World News

Tags

accra addo africa Association football Banks - NEC business Business_Finance chairman Donald Trump economy education Entertainment_Culture environment Geography of Africa ghana Ghanaian people government Government of Ghana Human Interest John Dramani Mahama john mahama Law_Crime mahama minister MPs elected in the Ghanaian parliamentary election Nana Addo Nana Addo Dankwa Nana Akufo-Addo National Democratic Congress National Democratic Congress (NDC) New Patriotic Party New Patriotic Party (NPP) nigeria politics Politics of Ghana president Social Issues Social Media Social Media & Networking sports United Kingdom United Nations United States Vice President War_Conflict

Recent Posts

  • Suicide at Aburi Botanical Gardens: Man Found Dead
  • Ghanaian-American Family Suspects Cover-up in Son’s Death at Fort Rucker Military Base in Alabama US
List of Ghana Holidays for 2020
Ghana Geocoding
Ghana Cedis Exchange API
Ghana Maps Service
Toyota Cars Auto Auction History
  • African Music Lyrics Directory
  • Business Directory
  • Diaspora
  • Top Stories

All rights reserved © 2021 GhanaStar.com

No Result
View All Result
  • News
  • Sports
  • Entertainment
  • Politics
  • Business
  • Music

All rights reserved © 2021 GhanaStar.com