Shares Dumped By Investors As Global Recession Worries Increase
Concerning figures from the New York Stock Exchange have shown that high-level investors are dropping key investments in global currency and assets for safer choices.
As fears grow among American investors over the unresolved US-China trade war and a number of high profile economies reporting shrinkage over the second quarter, many are turning to historically steady investments like gold and bonds over riskier choices.
In the last week alone, reports from the UK, Germany and China showed their economies decreasing significantly, sparking fears that a global recession could be just around the corner. Last night, the three main US stock markets closed 3% down from the previous day, with European and Asian stocks also opening down from previous trading this week.
Hard To Find Cause
Though it’s hard to pinpoint just what is causing this massive instability in the global economy, the ongoing geo-political turmoil including Brexit, the US-China trade war, increasing tensions in Hong Kong and decreasing confidence in the policies of the American president.
This news comes after the President attacked the US Central Bank for not doing enough to support the American economy, which looks likely to slip into recession despite Trump’s claims via Twitter that the economy was booming.
Many experts are now seeing the renewed interest in bonds as a sign that recessions in major economies could be closer than expected.
Many see the United States- one of the world’s largest economies- as the top offender in global instability.
The ongoing trade war with China has international affects and many believe is pushing investors to put their money into safer, reliable stocks. The President has repeatedly placed this blame on the US Federal Reserve- the USA’s central banking system- claiming that their decision to increase interest rates last year multiple times has caused market turmoil.
These attacks have prompted Wall Street to begin preparing for a contraction of the US economy, seeing it as an inevitability rather than a potential change.
It’s unclear yet how the European and Asian markets will respond to increasing global stability, but if the US sinks into a recession, it will affect economies internationally.