Stock Market Crash?
With 2018 soon coming to an end, investors soon begin to re-evaluate their shares and forecast predictions for the upcoming stock market. Many wonder due to many collapses of countries because of the economic financial crisis and businesses running out of the store. Thankfully for the US, the country’s GDP begins to rise ever so steadily with the new administration. The economy continues to outperform in October, with 250,000 additional new jobs and 3.7% of unemployment on record, its predictions may be well heading for a positive route. Reducing trade deficit by $300 billion per year and many innovative US factories and businesses in their stock market coming into way makes Americans spawn optimism for the long term future. The United States are about to create incredible growth and might be side to side along with China, one of the world’s most powerful economic nations in 2018.
Economy Power Nation : China
Though with China at the moment, there have been plenty of negative headlines and presses regarding its stock market. While most may not be as accurate as it seems, media tends to become a rather important indicator and can become a contrarian one when it reaches extremes. The more a media talks about a stock, market or asset, the higher the effect that comes into the nation. In truth, the facts remain that the portion implemented and announced tariffs remain low. The China trade war situation has greatly affected the Asian nation but to a more positive extent. According to forecast, the nation’s GDP continues to grow at an annual rate of 6.7% which is $820B per year. The $200B tariffs administered by the United States towards China are in less than 20% of the annual growth rate and is a bit less of a quarter of the base GDP. Investors considering the stock market investment are now considering two things to monitor ; the monthly chart of the Shanghai Stock Exchange (SSEC) as well as Euro.
The Euro is a surprising indicator for the China stock market because it’s not a conventional indicator to consider. Though the reason why is very simple – Euro is starting to lead as major turning points on emerging market chart. Though, it has not made any incredible major trend (up or down) ever since of the crude oil cash back in 2014. This might not be a powerful indicator but the euro continues to be the cornerstone in financial markets and will start to determine dominant trends. It is going to act as a catalyst for global markets and especially China’s stock market in particular.
US – China Trade War affects Stock Market
Many investors now look for the ongoing stock market prices as it becomes unstable due to the current trade war situation between the United States and China. Though it may seem that the relations between the two nations might deteriorate, the global economy is predicted to rise and drow at this point by 3.7% and at the same rate in 2019. Though previously the trade war continues to bring anguish within under nations such as Japan and France, it seems that the stock markets especially in China and US are steadily growing in a positive light and we may expect to see global growth for the first half of 2019.
Charles Mao is author of the article. He is a professional financial blogger and trader at stock predictor service. He has been lucky enough to work for the famous economics magazine. Charles is from Los Angeles.