Asian market stock prices soared as there seems to be a bounce back of market and share value in the global financial markets. The Chinese stock index soared for the fifth consecutive day. This comes on the heels of some very trying times for the Chinese markets. The Chinese slow down occurred nearly a year ago and had some drastic ramifications on the global market. It gave rise to a general slow-down of the oil and steel global market as import by China was reduced due to their slow economy. The slowdown also caused the fastest economy growth rate in the world to slow down and give way to India to replace the number one spot.
Asian market rules
With the Chinese markets that seem to be doing well for now, the Japanese Nikkei index also rose and created a strong growth. While the general Japanese economy has been quite erratic with its growth rate and slowdown, this is definitely a welcome sign for the third largest economy in the world. However, in light of the Asian economy soaring, the European economy seems to be losing a fair bit. Europe has been under some intense pressure, especially considering the United Kingdom’s potential exit from the European Union later this year. The uncertainty of the United Kingdom in the European Union has created quite a stir in the European economy.
As of now, Europe’s economy is also burdened with a generally slowing economy and debts that still must be repaid by Greece. European imports have also been gradually slowing down making traders quite nervous. The European Central bank will also plan to convene a meeting regarding the European interest rates later this month. Many of the stock market traders seem to be optimistic about their chances of a bounce back with a potential slash of interest rates later this year.
Worry in Europe
In light of the European economy suffering, the American economy woes were offset by the growth in Asian markets. The Asian market growth revived hope of an American partnership in the global economic growth. The United States Federal Reserve would also be increasing their interest rate, later this year. In fact, the Federal Reserve seem to be in quite a hurry to hike interest rates in order to curb inflation and boost growth rates. With a fading momentum, an interest rate hike seems to be the only way out for the European economy in the meanwhile.