Stock Volume: 2018 heads for worst losses of the decade

Stock Volume: 2018 heads for worst losses of the decade


The year 2018 for the stock market was 12-month commotion having the worst losses for the decade. Another worst year since the 2008 global financial crisis. That put fears to the global economy as it currently slows down.  At the same time, there’s the US-China trade war, Brexit uncertainty, and the soaring US inflation rates.

All fears rattle traders and trillion dollars loss within the world stocks. This year, the MSCI All Country World Index loss a significant 11% stocks. Their very first double-digit loss for a decade. Since the beginning of 2019, on the early days of January, FTSE 100 lost a 12% value. It was just about to reach the New Year’s Eve celebration for the London Stock Exchange, FTSE 100 is up 0.26% at 6,751.72. Shanghai Composite in China was among the stock record with the biggest loss, falling 25% towards a “bearish” territory.

The US-China trade war occurs too much it took most of 2018 and shaking the global financial markets. That worth hundreds of billions of dollars worth of goods. The same loss for both the United States and China’s economies. Their economic goods were obstructed by tariffs.

One economist from Hwabao Trust in Shanghai, Nie Wen says: “There are many short-term orders from overseas, but few long-term orders received by Chinese factories as caution remains amid the trade uncertainties.”

Another casualty for 2018’s rumple financial year is the German DAX, having stock index loss of 16% upon feeling the pressure situation of the China tensions. As of December 31 last year, German DAX was up 1.71% to 10,558.96.

Focusing on the emerging markets, Turkey and Argentina do lead on the most loss. Turkey is down by 40% and Argentina down by 50%. Argentina’s peso also fell 50% while Turkey’s lirahave had 30%, while others including South Africa’s rand, Brazil’s real, India’s rupee, and Russia’s rouble fell about 10% to 15%.

Declines in the global economy, oil prices were also significant at about 35% since September last year. On the cryptocurrency market, Bitcoin reached its lowest with $3,855 upon pricing more than $16,500 since the beginning of the year 2018.

Funds manager and global strategist of Allianz Global Investor, Neil Dwane said, “after 10 years of low interest rates and quantitative easing I think we have to understand how some of this leverage in the market can unwind… what was a virtuous circle on the way up can become a vicious one on the way down.”

The euro, pound, Canadian & Aussie dollars, and Swedish crown also dropped about 5% to 10%.

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