Stock markets worldwide are now turning bearish with increased worries over global growth affecting particular sectors, especially the technology sector. The selloff which started on Wednesday has triggered investors dumping on most risk assets, shaving off Asian shares and global stock future.
Add Your Heading Text HereStock Markets Disappointed As Growth Concerns Grow In Asia
The Asian markets were some of the most affected with the Tokyo as well as Taipei stock indices registering the highest drops. Both were down more than 3%, and the MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.8%. Traditionally, the month of September is a bad month for equities but the “correction”, as this recent dip is called, was for several reasons, one of which was disappointing U.S. manufacturing figures.
Perhaps, it is volatility that could be seen as recently expressed by Jason Teh, Chief Investment Officer of Vertium Asset Management while highlighting that Volatility is clearly on the rise. ”The market is getting more worried about the slowdown in growth which we felt the first signs of in August. ”
Nvidia’s selling off pressure leads to Tech stock downfall
Analysing Wall Street’s performance on Tuesday, one can note speaking of losses, affected by the largest sell-off of Nvidia, one of the leaders in the AI market. There is a good reason why the market value of Nvidia, a company that benefited brilliantly from the AI hype, shaved $279 billion off its market value. This decline in America carried a spillover effect to the Asian markets on Wednesday cutting down the margin of technology stocks.
An Nvidia supplier, Japanese chip-testing equipment maker Advantest sank 7% while Taiwan’s TSMC was down by more than 5%. South Korea’s SK Hynix sank a steep 7.7% decline. These losses have had a deeper impact on the overall weakness of the stock market particularly the U. S. stock futures were also falling. US contract-based S&P 500 declined to 0. 0.7% Nasdaq futures also fell by 55%, Additionally, Nasdaq futures dropped by 55 percent while Dow Jones futures dropped by 0.74%.
It also affected the European Markets and Oil Prices
The spillover of the selloff was also witnessed in Europe, where EURO STOXX 50 futures were down by more than 1% and FTSE futures by 0.75%. Nvidia, tech, weak data, and US, China concerns: Head of Macro Research for Asia ex-Japan at Mizuho Bank Vishnu Varathan commented that there was plenty of blame to go around.
New Chinese economy figures show China has not been able to register a very healthy rebound in its economy, which in turn has sparked demands for further loosening of monetary policy by Beijing. Expectations that oil demand will be weakened by a slowdown in the global economy, especially in such a large customer as China have made the prices go down slowly. On the 28th of June, Brent crude futures reached the lowest level of $73.14 per barrel the value of Brent crude declined to $69 while U. S. crude stood at $69. 72, both the lowest figure since December, The unemployment rate was 7. This is in adherence to the standard market trading practice where the oil prices had been reduced in the previous session by nearly 5%.
Regional Markets and Fluctuations in Currency
Analysing the regional environment stocks in Hong Kong also complied with this direction with the Hang Seng index declining 1.2%. At the same time, China’s CSI300blue-chip dropped by 0.3% while Hong Kong’s Hang Seng was down by 4.86%.
With more economic data from the U.S. expected this week on job openings, claims, and nonfarm payrolls data on Friday, volatility in currencies and the U.S. Treasuries has not seen a similar surge as that witnessed in equities markets. Some currencies like the dollar and the yen that are used in safe-haven have received a little boost because of this.
Yen gaphed 0. The currency exchange also showed the following changes: a US dollar was equivalent to 100,50 yen; a euro was equivalent to 130,50 yen; and a pound was equivalent to 152,80 yen. 2% to 145. 15 per dollar, while the U.S. dollar’s bounce caused the euro to retreat from the 13-month high it reached on Wednesday and last trading at $ 1.1057. The Australian dollar was also under selling pressure that declined by 0. 12% to $0.67035 due to low commodity prices and disappointingly low economic indications for Australia.
Conclusion: Future of the Global Markets
The upcoming days will be important since the focus will shift towards the next US economic indicators including Friday’s nonfarm payrolls that may affect the Federal decision on interest rates. Economists that were surveyed by Reuters predict the U. S. economy to have added 160,000 jobs in August after an increase of 114,000 in July.
As the situation persists on different world stock markets growth concerns have risen again and together with the tech sell-off it will be an important question whether these factors will lead to a further stock decline or whether more stable data will stabilize the situation. Stay alert as the financial environment could drastically change when the essential data are released.
