The Japanese Nikkei 225 reacted to a demarche of the American indices 7% drop
The world press does not stint on the headlines, assessing the current in the last 2 days the situation in the global markets. All the world’s major indices fall down rapidly, showing fall in the range of 4-7%. Tuesday bearish sentiment prevailed in the Asian markets – investors dumped stock after a collapse in the US.
At some point the Nikkei 225 index was down 7%, but then rebounded slightly, so that by the close, the decline was 4.7%. Thus Asia has responded to stock market meltdown in the United States: the Dow lost 4.6 percent, the largest drop in 6 years, BBC reports.
Total sales began last week after the employment report in the United States. Which has reinforced investors ‘ expectations in relation to the elevated tempo of interest rate increase, the fed. Meanwhile, experts do not hurry to call the current decline a beginning of another crisis and talking about correction. After all, before last week, stocks around the world rose gradually. And for the last 15 years there was not a single more or less serious (more than 3%) falling prices.
A portfolio Manager S&P Global Market Intelligence Erin Gibbs, I am convinced that the current collapse does not show signs of the collapse of the economy. But such a reaction on a correction from the press and investors due to the fact that during the years of stable growth all simply unaccustomed to, in General, the normal volatility.
Other analysts also do not see in these events, no threat to the world economy. IHS chief economist at Markit Joel prakken, believes that in the next couple of years growth stocks will be restrained. And markets should prepare for more frequent periods of volatility, such as those that are marked now – so the market will respond to accelerated inflation.
A sharp drop in stock indices resulted in a significant decline in the condition of the richest people in the world. According to estimates by Bloomberg Billionaires Index of the 500 biggest moneybags of the world have lost $114 billion due to the collapse of the US indices.
Most went to the head of investment company Berkshire Hathaway Warren Buffett, who lost $5.1 billion, mark Zuckerberg has lost about $3.6 billion, and Amazon founder Jeff Bezos poorer by $3.3 billion.