Stock markets declined globally due to slowing of world economy and power crisis

Washington/London/Tokyo: – The claims about possible recession in the global economy, the energy crisis and rising inflation have triggered unease among investors. The unrest had erupted in global stock markets, causing them to decline for two consecutive days- on Monday and Tuesday. This fall has affected the price of crude oil as well as gold. Oil prices have come down and gold prices have started rising.

As the intensity of the Corona pandemic is reducing to a certain extent, many countries worldwide are taking steps to restore normalcy. Due to these movements, the demand for various products has started increasing significantly. But at the same time, raw material prices have skyrocketed and the supply chain also has been disrupted. This has impacted the food and product prices, which have pushed up inflation substantially. At the same time, the energy crisis is looming large in many countries, including China and Europe.

All of this is beginning to jolt the international economy, with many leading financial institutions and experts predicting them. Figures from significant economies such as the United States and China have also strengthened the predictions. This has created an atmosphere of unrest among international investors. The repercussions of this uncertainty are being felt in global stock markets.

Major stock markets in the United States, Europe and Asia declined on Monday and Tuesday. These include the Dow Jones and Nasdaq in the United States, the UK’s FTSE, the German and French stock markets, the Stocks 600, and the Hong Kong, Shanghai, Singapore, Sydney, Tokyo, Seoul and Manila indices. Sources informed that there was a decline between 0.2% to 1% in the indices. On Wednesday, transactions started with a decline in the Chinese index for the technology sector and the Japanese stock market.

David Bilene, Chief of the City Private Bank, claimed that there is resentment in the investors owing to the power shortage in China, the major actions being taken in the technology and real estate sectors and increasing fuel rates. Analysts are also saying that there will be uncertainty among investors for some time as there is a possibility that the rising fuel rates, shortage of power, and supply chain problems will affect the profitability of the companies.