What’s Ahead for the World’s Major Markets?
The world’s economy is an ever-changing beast, and keeping track with the developments of major markets can be overwhelming. The global markets can be incredibly fickle and it’s difficult to tell what’s coming up next. In this article, we’re looking at what’s ahead for the world’s major markets.
Stock Markets
The stock market is a major indicator of how the state of the global market.
US Stock Market
The US stock market looks to remain strong due to the continued growth of the US economy coupled with the impact of Trump’s tax reforms. Some analysts have raised concerns about the volatility of the US market, given the global geopolitical uncertainty and President Trump’s protectionist policies.
European Stock Market
The European stocks markets have been steadily gaining, despite the economic and political challenges the region faces. The economic volatility caused by Brexit has had an impact on the region’s stocks but so far, the markets have been resilient.
China’s Stock Market
The Chinese stock market is expected to remain stable, with the government taking steps to control speculative investing. Current estimates predict that the Chinese stock market will grow and remain strong in the next year.
Currencies
The currency markets can also provide clues as to the global markets’ state of health.
US Dollar
The US dollar is the most dominant currency in the world. Its status is largely dependent on the Federal Reserve’s monetary policies. The current expectations are for the dollar to remain relatively stable in the coming year, unless an unforeseeable event causes disruption.
Euro
The euro is the currency of the eurozone, which consists of 19 countries. The euro is expected to be volatile this year due to Brexit and the political turmoil in Europe.
British Pound
The British pound is expected to remain volatile in the coming year due to ongoing uncertainty surrounding the Brexit negotiations.
Chinese Yuan
The Chinese yuan is expected to remain relatively stable and even appreciate against the US dollar as the Chinese economy continues to grow and modernize.
Commodities
Commodities are another possible indicator of global market sentiment.
Oil
Oil prices are incredibly volatile and the price of oil can be affected by a number of factors, such as supply and demand, geopolitical tensions, and weather events. OPEC, the Organization of Petroleum Exporting Countries, has put limits on production in hopes of stabilizing prices, but the situation remains unpredictable.
Gold
Gold is seen as a safe-haven investment, and as such, its price tends not to be too affected by market movements. The gold price is largely influenced by inflation and geopolitical risks.
Understanding what’s ahead for the world’s major markets can be a challenge but this article offers a snapshot of what may be ahead. Whether you’re an investor, a trader, or simply an observer of the global markets, this article has hopefully been able to provide some insight into what’s ahead. With an ever-evolving world market, it is essential to stay informed and on top of all the potential developments.
