Global Stock Markets: Review & Forecast

Global stock markets in year 2018 has shown a sharp decline in record-setting. Indicators of stock markets index showed this evidence, i.e, the Dow fell 5.6%, the S&P 500 was down 6.2% and the Nasdaq fell 4%. Particularly in December, the Dow and the S&P 500 continued to decline at a dreadful rate, down at respectively 8.7% and 9%. This year's Christmas Eve was the worst ever for the index. A period of extreme volatility portrayed year 2018 in the midst of a global economic slowdown, concerns about monetary policy, political dysfunction, inflation fears and worries about increased regulation of the technology sector.

Impact of stock shock was felt worldwide as indicated by the plunge of the FTSE All-World Index by 12% this year. It's the index's worst performance since the global financial crisis, and a sharp reversal from a gain of nearly 25% in 2017. The market damage was derived by several circumstances such as Brexit impact on the United Kingdom and Europe as well as the slowdown in the economy of China. Chinese trade outlook and a rapid rise in debt levels contributed to the country’s declining stock market performance.