The global economy is in a unique position, with very unusual, largely unprecedented movements in the equity, currency, and commodity markets. That being said, recent stock market activity suggests that downside risk may be limited. According to a recent sector spotlight report from GodzillaNewz, the US, European, Japanese, and Chinese markets are all holding strong in monthly charts – a sign that the robust global financial recovery that has taken place over the past year is staying on track.
In the US, the S&P 500 and the NASDAQ 100 are both firmly in the green on their latest monthly charts. The former is up 9.5% while the latter is up an impressive 13%. This suggests that October was a favorable month for US stocks, and bodes well for the coming months of the year.
In Europe, the Euro Stoxx 50 and the FTSE 100 are tracking similar growth patterns, with both up 7.5%. This implies a positive sentiment among European investors, regarding the likely trajectory of global financial markets in 2020.
In Japan, the Nikkei 225 has continued its positive trend in October, closing up 4.3%. While this is still a relatively small amount of growth, it is a strong sign of stabilization, considering the economic downturn Japan experienced earlier in the year.
Finally, the Chinese markets have been some of the most resilient in the world. Both the Shanghai Composite and Hang Seng Index are up 12.5% on their latest monthly charts, which suggests that China’s strong economic approach to dealing with the pandemic is paying off.
Overall, the results of the Sector Spotlight report indicate that, despite the turbulent economic environment, the global financial markets are still looking in good shape. This could mean that the inevitable corrections and dips are likely to stay within reasonable levels, providing investors with some much needed peace-of-mind during these uncertain times.