On Tuesday, the 18th of December, the Global equity market slid and US shares soared slightly, as investors remained unnerved awaiting indications about FED’s decision on monetary policy.
The global-scale sell-off continued in the face of a Federal Reserve meeting and questions had been asked whether the FED would be able to hike rate despite much turbulent market indicators and a weakened global economy.
Energy sectors had highly weighed on the US stocks, as US crude had plunged in to a multi-month low, in the wake of a record US shale production and raised US oil inventories.
On Tuesday, December 18th, the MSCI’s world stock index lost 0.3% and the index is down 10 percent this year, pointing towards its worst performance in a decade. Despite volatile trading sessions, the investors gained a slight profit on Tuesday, as the Dow Jones Industrial Average added 0.35 percent, the Nasdaq Composite gained 0.45 percent and the Standard & Poor 500 gained 0.01 percent.
A European strategist from Raymond James, Chris Bailey, said, “We’re facing the biggest December fall in U.S. stocks since 1931 and this is striking and worrying at the same time.
We are at a regime shift moment, and the debate is how big that regime shift will be”. Concomitantly, the Tuesday’s market had been dramatized by the US crude saga, as US inventories scored a record reserve and the US shale rushed in to another record production, dipping the US crude price at $46.40 per barrel, on its multi-month lows.