Following the continuous downward condition of Asia’s share market for quite a while, the international share market is affected fiercely. It is understood that there is panic among the investors due to the increasingly controversial global geopolitical situation, so the worry is growing. This has oppressed the market.
The risks created on various geopolitical issues can play a major role in the collapse of the global economy – Investors are gradually concerned about such apprehension. China’s trade conflict with the United States, the increased interest rate in the USA, ongoing tension surrounding the assassination of Saudi journalist Jamal Khashoggi, and the issue of budget debate between the EU and Italy are currently underway in geopolitics.
The top stock index of UK-based blue-chip companies (FTSE-100) has fallen below 7% since the end of September. After May 2012, it was the worst evil month in the share market index. At that time the index rose to the highest point, now it’s lost 10 percent compared to that. Basically, the concerns of investors rising due to the expiry of Britain from the European Union (EU), whose impression is pretty clear on the share market.
According to the data from Hargreaves Lansdown, a financial services provider company, the UK’s investor confidence is currently at the lowest of the past 23 years. According to the survey of the company, investors’ confidence index has dropped to 53 points in September (2018), which is the lowest since the survey began in 1993. In the past decade, the index was seen to be on average at 92 points, but the average of the last 12 months is just 69 points. Senior Analyst of Hargreaves Lansdown, Mr. Laith Khalaf said, ‘Investors are in the grumpy mood because the progress of Brexit issue is very little. The financial crisis also affected investors’ minds, but not as much as we are currently seeing.
There is also a warning about economic and income growth in the United States, which is fluttering with the help of tax-deduction measures. For example, it can be said that the cost of raw materials has increased since President Donald Trump imposed the import duty on steel.
On the other hand, the European Union has broken the stock market in Europe after the Italian government rejected the draft budget proposal. On the other hand, after the EU Commission’s rejection of the proposal of the Italian government’s draft budget, Europe’s stock market has fluctuated. Besides, according to the Purchase Manager Index, the business activity of the Euro Zone has decreased more than imagination. International stock market downturn happens due to the geopolitical tension.
The InCAP Desk
