Stock Prices Crash Globally Due to Slow Global Economy

Dec 26, 2018

As level of concerns towards slow global economy is growing, Japan’s Nikkei Stock Average Index fell below 20,000 for the first time in the past year followed by U.S. stock market crash.
Nikkei Stock Average Index showed downward trend when on the 25th and it dropped by 1033.20 (5.12%) compared to the closing price (20,166.19) from the previous day as it recorded 19,132.99 at 3 P.M. of the 25th.
This is the first time Nikkei Stock Average Index fell below 20,000 since it happened in September of 2017.
Exchange rate between Yen and dollar on the 25th recorded the lowest rate since last August as it was 110.27 Yen per dollar.
U.S. stock market dropped sharply on the 24th due to government shutdown, controversy regarding dismissal of Chairman Jerome Powell of the Federal Reserve, and slow global economy.

Stock Prices Crash Globally Due to Slow Global Economy

On the 24th, Dow Jones Industrial Average Index finished the day with 21,792.20, which is 653.17 (2.91%) lower than the closing price from the previous day. S&P 500 Index and NASDAQ Index dropped by 2.71% and 2.21% respectively.
This is the first time when these 3 indexes fell by more than 1% right before Christmas. S&P 500 Index has entered a bear market along with NASDAQ Index as it fell by more than 20% compared to the highest mark within the past 52 weeks.
There had been continuous sales of stocks within Tokyo Stock Exchange on the 25th due to crash in New York stock prices.
NHK reported that crash in stock prices is due to rising concerns towards slow global economy. It seems that increase in level of anxiety towards government operation by President Donald Trump due to government shutdown and other factors has also affected stock prices.
Staff Reporter Park, Yoonho | yuno@etnews.com

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