Global stock markets are falling at a fast pace due to a US jobs report that was just …. too good. Yes, that is the official explanation for the Japanese stock market being down some 6.1% at the time of writing, the morning after the Dow Jones had its worst drop since the financial crisis of 2008.
China’s Hong Kong's Hang Seng dropped 4.5%.
In the past year, a strengthening global economy and healthy corporate earnings in the first year under President Trump means the market had run an “overbought” phase.
The fear in the markets came roaring back last Friday when a stronger than expected US jobs report returned the fear of interest rates having to be raised soon. Furthermore, there is no knowing what the new Fed chairman out to replace Janet Yellen at the helm will decide as to this point.
With that in mind, and knowing that after the market ran up some 40% in the US since Trump’s election, this is what analysts refer to as a ‘healthy correction’.
Mr. David Kuo of financial services advisory Motley Fool explained: "Economic news from the US has been stronger than anticipated."
"So, perversely, the market correction has been caused by the positive economic news."
European markets will open in about 90 minutes at the time of writing with pre-market signs pointing towards a much lower opening.
Bitcoin continued its slide and was down to $6,150 at the time of writing. The best known of all cryptocurrencies is still looking for support levels and joins others like Ethereum, Litecoin and Bitcoin Cash who now all are losing more than 50% since the beginning of 2018.