Brexit, U.S. Government Shutdown Drive Global Market Downturn
Mon Jan 07 2019
Mark Cooper (1419 articles)

Brexit, U.S. Government Shutdown Drive Global Market Downturn

Optimist or pessimist, there’s plenty of equity grist for the mill. Early on Monday, U.S.-China trade talk resumptions and a strong jobs market report in the U.S. helped markets feel more hopeful. MSCI’s world equity index, tracking stocks in 47 countries, was at an almost three-week high by Sunday night.

It didn’t last long.

Shortly after some optimism in Asia, European stocks took a dive. The culprits: no-deal Brexit preparations, surveys predicting slower growth in the Eurozone, and U.S. government shutdown day 17.

Wall Street traders and investors continue to have the jitters. Each day brings a new mix of news driving volatility, with no one certain as to whether a given bit of information will be seen as good or bad. Increased recession fears aren’t helping.

Stock futures activity on Monday first showed the S&P 500 and Nasdaq down, with the Dow up slightly. In under an hour, it was Nasdaq down a touch, the S&P 500 up just a bit, and the Dow showing a 0.2% increase.

The Nasdaq negativity might have something to do with Chinese investment in U.S. tech, as Reuters reported. Venture funds from China poured $ 3 billion into startups here. But Donald Trump’s moves to limit China’s access to American innovation have stopped the money flow.

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Mark Cooper

Mark Cooper

Mark Cooper is Political / Stock Market Correspondent. He has been covering Global Stock Markets for more than 6 years.