Global Stock Markets Plunge, Amidst US Recession Fears

The global stock markets are on the plunge and this, amidst profound fears of recession in the United States’ economy.

Despite that in the US, the service sector recorded a rebound last month, the story of feared recession is the same at European and Asian stock markets.

Now, many are left wondering what has happened to the risk appetite of investors, even as the Dow, the Nasdaq Composite, and the S&P 500 all had negative runs.

Yes, the US situation could be explained, if not marginally, but significantly by its involvement in the Middle East palaver, an involvement that translates to huge financial and strategic commitments, but how far really can that affect situations at trading floors.

READ ALSO: What Is Making US Stock Market Investors Excited?

Aside US direct financial involvements and arms purchase support, interest rates quagmire, – which many believe had been high – unemployment and inflation have been causes for concern

As a matter of fact, buzzes about likely inflation have been around awhile, and economists say this is triggered worsening unemployment amongst others.

Further underscoring the story of Global Stock Markets Plunge are reports that Japanese stocks suffered their biggest loss since 1987, with the Nikkei 225 index in Tokyo closing more than 12% lower.

Not so for Nigeria, where optimisms have been raised of possible notable growth in capital market in 2024 “as the regulatory authority, the Securities and Exchange Commission (SEC), comes to terms with the new digital asset reality that will change the market’s tradeable assets across market types and geographical jurisdictions.

Proshare which makes this submission, lists:

-Expanding the opportunity for cross-continental trading in equities through an arrangement guided by the African Exchange Linkage Programme (AELP) and Afrexim Bank.

READ ALSO: How CBN’s Interest Rate Hike Affected Stock Market in Q3

-Deepening and broadening the mandate of the Central Securities and Clearing System (CSCS) as a Financial Infrastructure (FI) capable of smoothly settling different classes of assets and transactions based on blockchain technology, as two key drivers.