The indices are set to end the month on green, this being the heaviest month for the S & P500 in February 2009 and the worst October since the financial crisis. Benchmark lost 8.5%, half of that 16.8 percent collapsing, which we witnessed in 2008, a week after the collapse of Lehman Brothers.
The month was tarnished by bad news, but in the end there was no clear and direct catalyst. The worries that arose in fear were the worsened trade relations between China and the US, the current monetary policy of the Fed and, of course, the slowdown in global economic growth.
The sale was not limited to US or European shares. The Chinese market has also suffered damage. The World Index MCI All-World reported a 10% drop for October. Especially for the US economy, investors are worried that with years of monetary stimulus and short-term tax incentive from Trump, higher interest rates and lower paper prices will bring the US economy to a slowdown.
Another factor is the slowdown in the Chinese economy, which, after a decade of impressive growth, has started to show smaller GDP growth. China's debt levels are also high and are a major concern for many investors.
Oil prices are also a cause for concern in combination with sanctions against Iran and the likelihood of Saudi Arabia choking its supply and yield, which has been on the agenda since the assassination of journalist Jamal Kashoggi.
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