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Is it 2008?Global stock markets show the longest decline since the last economic crisis

https://sputniknews.com/20220514/is-it-2008-all-over-again-global-stock-markets-show-longest-decline-since-last-economic-crisis-1095510781.html

Is it 2008?Global stock markets show the longest decline since the last economic crisis

Is it 2008?Global stock markets show the longest decline since the last economic crisis

The early economic revival detected during 2021 when countries began to break out of the pandemic blockade was undercut around November as first evidence … 14.05.2022, Sputnik International.

2022-05-14T12: 45 + 0000

2022-05-14T12: 45 + 0000

2022-05-14T12: 46 + 0000

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Global stock prices have generally fallen for about 19 weeks, the longest negative trend since the 2008 economic crisis. The FTSE All-World Index is a benchmark for more than 3,100 companies in almost 50 countries and has been declining for 19 years. Short-term growth in March for several weeks. During this period, FTSE All-World lost 16.49%, not officially falling into a bearish trend, and needs a 20% drop from the last significant high. In mid-2008, FTSE All-World fell 39 times in a row. A few weeks from May 1st. The S & amp; P index, which tracks the performance of companies listed on the US stock market, showed similar results, with a 19-week deficit and a loss of 16.11% across the period. The Nasdaq Composite Index for the market value of US tech companies has deteriorated significantly, losing 26.48% during the 25-week decline. The Shanghai CSI 300 Index, the benchmark for the Asian market, is gradually losing value from the beginning. Similar to the FTSE All-World Index, the STOXX Europe 600 experienced a temporary surge in March and then fell sharply throughout April. However, the European equities index regained 3.62% in the last two days of the week, a stronger rebound from the decline than the US and global indices seen on Friday. Inflation, China’s COVID, High Interest Rates The global stock market is currently under pressure of all kinds. Despite the fact that the global economy is largely postponing lockdowns, it faces high inflation prospects that evaporate the small growth achieved during the 2021 economic recovery. Government measures to combat inflation have led investors to shift funds from more risky equities to more reliable and profitable bonds as interest rates rise in the US, UK and Europe and subsequently yield government bonds. doing. Selling stocks has pushed stocks further down, so far the rise in interest rates has only been a slight drop in inflation, and global instability is also putting pressure on the stock market. One factor is China’s fight against the new COVID-19 pandemic hotspot in the country, where Beijing is fighting a major blockade of cities that have halted economic activity. In such a situation, even the recovery of the stock market on Friday makes positive predictions for economists. Matt Stucky, portfolio manager at Northwestern Mutual Wealth Management, told FT that it is impossible to make reliable predictions at these levels of instability. Government policy. Virtually the entire crypto market has been in the red for the past few weeks, even though some professional investors consider them a safe port against inflation. Negative trends have also affected so-called stablecoins, digital tokens linked to the value of dollars and other cash currencies. So, despite the recent loss of value of terraUSD and Luna tokens, which are considered stable coins tied up in US dollars, little is left for investors. Stay in touch no matter what. Follow the Telegram channel to get all the latest news: https://t.me/sputniknewsus

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The early economic revival detected during 2021 when countries began to break out of the pandemic blockade was terminated around November as first evidence of decades of high inflation levels appeared around the world.

Global stock prices have generally fallen for about 19 weeks, the longest negative trend since the 2008 economic crisis.

The FTSE All-World Index is a benchmark for more than 3,100 companies in nearly 50 countries, declining over 19 weeks and showing short-term growth in March. During this period, FTSE All-World lost 16.49%, not officially falling into a bearish trend. This requires a 20% drop from the previous significant high.

In mid-2008, FTSE All-World fell for 39 consecutive weeks from May 1st.

The S & P Index, which tracks the performance of companies listed on the US stock market, showed similar results, with a 19-week deficit and a loss of 16.11% over the period. The Nasdaq Composite Index for the market value of US tech companies has deteriorated significantly, losing 26.48% in the course of a 25-week decline.

The Shanghai CSI300 Index, the benchmark for the Asian market, has gradually lost its value since the beginning of 2021 and has fallen by about 31% since it peaked on February 10, 2021.

Similar to the FTSE All-World Index, the STOXX Europe 600 surged temporarily in March and then fell sharply in April.However European stocks‘The index has regained 3.62% in the last two days of this week. This was a stronger rebound from the fall than the US or Global Index seen on Friday.

Inflation, China’s COVID, high interest rates

The global stock market is currently under pressure of all kinds.They all face decades of high inflation prospects, even though the global economy is largely postponing blockades. Evaporate slight growth They managed to achieve it during the 2021 economic recovery.

Government measures to combat inflation are pushing the government even further. With rising interest rates in the US, UK and Europe, followed by higher yields on government bonds, investors are shifting their money from more risky equities to more reliable and profitable bonds. .. Stock price sellouts have pushed stock prices down further, and so far the rise in interest rates has been a slight drop in inflation.

US President Joe Biden talks about infrastructure investment at Portland International Airport on April 21, 2022 at Portland Aviation National Guard 142 Fighter Base in Portland, Oregon-Sputnik International, 1920, 10.05. 2022

US President Joe Biden Announces Plans to Fight Inflation

Global instability is also putting pressure on the stock market. One factor is China’s fight against the new COVID-19 pandemic hotspot in the country. This is to fight the massive blockade of the city where Beijing has stopped economic activity.

In these situations, even Friday’s stock market recovery did not encourage economists to make positive predictions. Matt Stucky, portfolio manager at Northwestern Mutual Wealth Management, told FT that it is impossible to make reliable predictions at these levels of instability.

“When moving [on the markets] This is unstable. Trying to play the game wearing a market timer hat is really dangerous. Indeed, it will be summarized as to whether the US economy is in recession a year from now, “Stucky said.

Global equities are not the only commodities that are declining rapidly amid the uncertainties caused by inflation and government policy. Virtually the entire crypto market has been in the red for the past few weeks, even though some professional investors consider them a safe port against inflation. Negative trends have also affected so-called stablecoins, digital tokens linked to the value of dollars and other cash currencies. So while the value of terraUSD and Luna tokens has recently been washed away and considered a stable coin tied in US dollars, investors have left little to do.

Stay in touch no matter what! Follow the Telegram channel to get all the latest news. https://t.me/sputniknewsus

https://sputniknews.com/20220514/is-it-2008-all-over-again-global-stock-markets-show-longest-decline-since-last-economic-crisis-1095510781.html Is it 2008?Global stock markets show the longest decline since the last economic crisis

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