It has felt like an extremely long time since stocks in markets worldwide have had any sort of consistent gains, but this week in European and Asian markets,looked like a winning streak. The Stoxx Europe 600 Index saw gains in Asian equities, as markets feel more optimistic about the limited impact of China’s market turmoil on stocks and economies. Furthermore, Japan’s prime minister said he will lower corporate taxes next year—further inspiring optimism.
The concern about China’s economic slow down and the impending U.S. interest rate increase trigger the worst market drop since 2011. Yogi Dewan, founder of Hassium Asset Management in the United Kingdom said, “This is not just a rebound after the battering—it’s people going back to the basic fundamentals and realizing that things actually still look pretty good. The world can probably live through an even bigger crisis in China. I was really encouraged today by the news in Japan. Reducing corporation tax is a really big deal and is very supportive.
Stocks as of early afternoon in London on Wednesday September 9th, the Stoxx 600 advanced 2.1 percent. Additionally, all 19 industry groups rose, with miners and carmakers up the most. Glencore Plc and Anglo American Plc rallied more than 4.6 percent. Other stocks with noticeable bumps included Ryanair Holdings Plc, which jumped 6.4 percent and Com Hem AB climbed 3.9 percent.
The good news is needed and a stronger market could help offset some panic about the Fed’s rapidly approaching decision. While market volatility is certainly not gone for good, the upswing is encouraging for investors worldwide. In the meantime, if you are interested in discussing your stocks and portfolio, call an expert at Apex Financial Advisors today. We can help find ways to build and protect your family’s wealth today.