What Steered Stock Markets in 2015?

The Chinese stock market managed to beat European and American indices in 2015. The Shanghai Composite Index added a yearly 9.4%. However, the year was nothing short of volatile. Margin trading, or trading with “borrowed money”, has gained much traction on the Chinese market and has contributed significantly to market volatility. Fluctuations on the market have also resulted from policy measures such as the devaluation of the Yuan or Renminbi in August, the first in 20 years, a move that rattled global markets. The market swung between bearish and bullish trends with sizeable double-digit growths at the beginning of the year and with a market crash in mid-June with $700B of value lost in one-day.

China’s growing global influence is undisputable since concerns over the country’s economic growth triggered selloffs not only on the Shanghai bourse but also on US, European and other Asian markets in August 2015. Monday August 24, 2015 was dubbed “Black Monday” in China with the Shanghai Composite falling by 8.5% while in parallel a massive selloff was witnessed on US markets with the Dow Jones Industrial Average briefly losing as much as 1,000 points. The tumble came about as investors rid themselves of positions in order to hedge against losses outside the US through “stop-loss” orders designed to sell once a stock reaches a specific price. On this day, The Stoxx Europe 600 index shed 5.3%, its biggest daily loss since December 2008, the German DAX dropped by 4.7% and Japan’s Nikkei Index plunged by 4.6%…

For the full report, click on the link below:

What Steered Stock Markets in 2015

Leave a Reply

Your email address will not be published. Required fields are marked *