While the last day of December saw a positive swing in the market, as well as a few other rebounds towards the end of the year, the last month of 2018 and the beginning of the new year are not looking great for the global stock market.
Trading in Asia was in the red as markets opened in the US on January 2nd, and this indicates more uncertainty for the future of Asian markets and the global economies. December was particularly volatile in 2018, and this is continuing into 2019. The S&P 500 was down 6.2 percent overall last year, which marks the lowest numbers since the financial crisis.
The last year saw several trade issues with the US and China, exacerbated by politics, leaving some markets weak and casting doubt on the future. While the economy in the US still remains strong, your average American is still very much wary of what the future holds, and this low confidence is affecting investors. With more announcements of interest rate hikes in the next year, economists are hopeful for more stability even if it means slowed global growth, which has been the trend over the past few months. The US saw huge leaps and dips in the markets, and China, which saw major contractions for the first time in a year, is starting the year on a low note.
