The U.S. Dow Jones has shown poor performance since 2008 with the last two months witnessing violent fluctuations.
Most of the Asian markets have closed in the red in 2018. FTSE 100 has seen its worst decline in a decade. The Chinese Shanghai has fallen almost 25 percent in 2018. The Shenzhen has lost an equal percentage for the year 2018. Hong Kong saw a decline of 13.61 percent for the year 2018.
China has seen a major slowdown with the growing trade war against the United States. The economy has also weakened with the slow down. Shanghai closed at 2,493.90 for the year. The manufacturing sector in China has fallen for the first time in December after more than two years.
The Chinese PSI index is at 49.4 which is less than the estimated 49.9 according to Reuter’s polls. This is far lower than the crucial support level at 50, showing that there may be a correction.
The FTSE which started the year at 7,687 has closed at 6,728 points which is almost 12.5 percent decline. The French CAC has slid by 11 percent. The German DAX was the worst hit with a decline of 18 percent. The Brussels row is still challenging the European economy for fear of a further slowdown.
Crude which is trading at slightly better levels is still trading at lower prices.
The U.S. President has shown his displeasure to a hike in interest rates by the Federal Reserve, which shows a rift with the Fed. The trade tariffs against China have been temporarily postponed for 90-days after which further talks will be held and investors wait with anticipation for some positive news for global stability.
However, the Tax Cuts and Jobs Act of 2017 has provided the economic stimulus required in the U.S. economy.