Global stock markets keep falling at a fast pace due to a US jobs report released last Friday and the fear of central banks around the globe heightening interest rates. The global selloff continued today with Asian and European markets further down.
On Thursday evening already, the Dow Jones had ended the session some 4.2% lower at 23,860, the S&P 500 had closed down 3.8% as the Nasdaq sank 3.9%. European exchanges also headed south on Thursday and continued that rout on Friday.
In 2017, a strengthening US economy and healthy corporate earnings in the first year under President Trump had given the markets a boost to get to an “overbought” phase, with many in the beginning of the week still defining the happenings as a healthy 10% correction.
JP Morgan noted in an analysis of the week: “A reassessment of the inflation outlook at this point in the cycle is natural and markets are adjusting for this.”
“But given that U.S. markets are now in correction territory it’s likely that the most severe gyrations will hopefully have passed. Volatility may remain for a while longer, but the strong economic backdrop and sustained earnings outlook means we continue to prefer equities.”
Related coverage: <a href=" https://thegoldwater.com/news/17382-Dow-Has-Worst-Week-In-2-Years-Despite-Booming-Economy" ">has worst week in 2 Years Despite Booming Economy</a>.
By now, most are beginning to fear that more drops may lie ahead before stock markets find support.
Bitcoin, just like most of the other Crypto currencies, stabilized somewhat around the $8k level. At the time of writing, it was trading at $8,200.
Related coverage: <a href=" https://thegoldwater.com/news/17557-Bitcoin-Bear-Market-Continues-7-3k-Amid-Global-Stock-Selloff "> Bitcoin Bear Market Continues ($7.3k) Amid Global Stock Selloff </a>.
<b> Crypto Hack</b>
Another day, another cryptocurrency exchange gets ‘hacked’. this time Hong-Kong based Finance claimed that it needs to stop trading and customer withdrawals until a ‘prolonged system upgrade’.
Many took to social media commenting they expected the exchange had been hacked, but the company strongly pushed back against the claim, saying:
"We will allow a 30-minute window where users can cancel open orders prior to trading being opened."
"We will continue to update every two hours until the upgrade is complete."