Global stock markets plunge, Asian stocks slid steeper

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Global stock markets plunge, Asian stocks slid steeper

Trading on Friday saw chaos all over as the American stock market and the Asian stock markets plunged downwards. The slowing down of the Chinese economy in the third quarter (ending September), the stand-off between the European Union and the Italian government on the latter's budget proposal and the overall concerns regarding the global trade markets ensured that the bear featured on the day prominently.

The three American stock markets all stooped down. The S&P Index 500 lost around 1.44% while the Nasdaq and Dow Jones fell by about 2.06% and 1.27% respectively. Moving along, the Japanese stock market Nikkei fell by about 1.7%.

The Australian stock market was also dragged down and it was trading lower by around 0.6%. In terms of the Chinese stock market, the Shanghai Composite Index closed the day (Thursday) at a loss of nearly 3%. The statistics for the growth of the Chinese economy, as published in a report in Reuters, stated that contrary to analysts' expectations that the country's economy would be posting a growth of about 6.6%, the Chinese economy posted a growth of only about 6.5%.

This slowing down comes in the wake of exchange of duties between the United States and China earlier in the third quarter. Earlier, the International Monetary Fund had revised their estimations of economic growth of both countries.

Prior to that China had had its growth figures (for 2019) revised by the World Bank which had published its report on growth estimates for the East Asian and Pacific region.