I was on the flight home on Friday (23 March) touched down at 7.00 pm and when I looked at the stock indices, Shanghai Composite lost 3.39%, Nikkei 225 lost 4.51% and Singapore’s STI lost 2.00%. That was ugly. I searched for reasons for the carnage. As it turned out, President Trump had signed an executive memo to slap tariffs on US$60 million imports from China. China fired back with tariffs targeting at US$3 billion of US import into China. The fear of trade war between two top world economies looms.
During the period I was away, the stock indices moved downwards between 3 March and 23 March (3 weeks).
|Dow Jones (USA)||24,538.06||23,533.20||-4.1%|
|Nikkei 225 (Japan)||21,181.64||20,617.86||-2.7%|
|Hang Seng (HK)||30,583.45||30,309.29||-0.9%|
The worst hit indices were Dow Jones (-4.1%) and Shanghai Composite (-3.1%). The Straits Times Index lost 1.7%.
Lesson learned was that stock markets could gyrate by politics of nations.
Copyright © 2018, limkimtong for Living Investment
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