Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Bear Markets March Across the Globe

share with twitter share with LinkedIn share with facebook
share via e-mail
12/07/2018 | 11:45am CET

By Riva Gold

In a sign of the breadth of the global selloff in stocks, Germany's main stock index fell into a bear market Thursday, the latest benchmark to have tumbled 20% or more from its recent peak.

There is one thing some of global bear markets have in common: They have been caught up in global trade disputes.

The DAX index of 30 major companies in the German stock market dropped 20.3% from its January closing high. The index fell 3.5% on Thursday after a steep decline in oil prices and the arrest of a top Chinese tech executive spooked markets.

Other markets already in bear territory are home to companies exposed to recent trade fights between the U.S. and China. The Shanghai Composite Index, China's main stock benchmark, headed into a bear market in June, followed by Hong Kong's Hang Seng Index in September and South Korea's Kospi in October.

German stocks have been among the worst performers this year in Europe, as a slowdown in the global economy and uncertainty around trade have hurt the export-heavy index. Companies listed in Germany's DAX are among the most sensitive to tariffs and weaker growth around the world, with roughly 80% of their revenues coming from outside of Germany, compared with just 37% outside of the U.S. for the S&P 500, according to FactSet.

Car maker Daimler AG, steelmaker Thyssenkrupp AG and tire maker Continental AG are all off more than a third this year. Deutsche Bank AG is the worst performer, down more than half.

Germany is particularly dependent on the auto sector, which has suffered this year investment professionals worry that trade friction could hit the industry's complex supply chains. tweaked to drop "amid" disliked by our reader The German car industry makes up roughly 7.7% of the country's gross domestic product, and its troubles subtracted 50 basis points from third quarter growth, according to Bank of America Merrill Lynch.

"On Europe, we're still bearish," said Bessemer Trust's Chief Investment Strategist Holly MacDonald, who has recently reduced exposure to European assets. The coupling of muted or even slowing growth next year and a series of political challenges makes it very hard to see the region doing well, she said.

Domestic political uncertainty has hit European stocks hard. Italy's FTSE MIB Index fell into a bear market in October as the Italian government is trying to end a standoff with Brussels over the country's budget.

Brexit worries aren't helping support demand for European stocks either, with investors withdrawing money from European equity funds for 12 straight weeks through the end of November, according to fund-tracker EPFR Global.

Write to Riva Gold at riva.gold@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
CHINA-SHANGHAI COMP -0.82% 2576.65 End-of-day quote.-22.25%
DAX -0.29% 10740.89 Delayed Quote.-16.85%
DJ INDUSTRIAL 0.35% 23675.64 Delayed Quote.-4.22%
HANG SENG -1.07% 25837.92 Real-time Quote.-13.69%
KOSPI COMPOSITE INDEX -0.64% 2060.59 Real-time Quote.-16.27%
NASDAQ 100 0.67% 6491.5163 Delayed Quote.0.81%
NASDAQ COMP. 0.45% 6783.9114 Delayed Quote.-2.17%
S&P 500 0.01% 2546.16 Delayed Quote.-4.77%
STOXX ITALY 45 (EUR) -1.17% 84.25 Delayed Quote.-14.21%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news "Economy & Forex"
07:05aROMANIA : EIB supports expansion of logistics infrastructure
07:04aELON MUSK : Elon Musk unveils his first Los Angeles-area tunnel
07:02aFed expected to raise rates, may signal fewer hikes ahead
07:00aAUSTRALIAN GOVERNMENT : Retailer Reliability Obligation agreed at COAG Energy Council
06:58aElon Musk unveils his first Los Angeles-area tunnel
06:58aMARKET SNAPSHOT: U.S. Stock Futures Climb Ahead Of Fed Meeting; Trade Optimism Returns
06:57aChina's CNOOC to boost exploration spending, signs strategic deals
06:46aChina, U.S. hold phone call on economic, trade issues
06:40aChinese city's property easing a test of central govt resolve as economy slows
06:25aYuan inches up before Fed decision, seen trading in a thin range
Latest news "Economy & Forex"