Global markets facing huge volatility and uncertainties

Markets were pretty resilient in spite of heavy sell off in US for two consecutive days. Markets were relieved that Nikkei and ASX shed only 0.35% and 0.51% respectively. Hang Seng and Shanghai Composite Index fell when they opened but recovered and landed on positive territory when the bell rang, cheering investors. Analysts said it had to do with the effect of supportive policy direction from Central Government becoming clearer by day. But both markets are not out of the wood yet as US correction is far from over. What surprised the markets most was the performance of European markets as it rebound 1.12% amid huge uncertainties like undetermined Brexit outcome, and EU on course to punish Italy’s deficit budget. Whereas US Dow Jones struggled to stay above the water today as investors were seen hunting for bargain high tech stocks. In sum, markets volatility is the order of the day, with so much uncertainty hanging around, the advice from our guest, independent economic analyst and strategist, Dr Po Man Chan, is “ Cash is the King” for ordinary investors.

Equity Backdrop. Woman looking at the screen. SBS Source: SBS