Accordingly, in January is often considered a positive month's stock market, with the new money flowing into hedge funds, while investors are not subject to pressures related taxes (due to pressure this force has been softened at the end of the previous year).
However, the data on investment returns in the United States showed that the profitability of January this year inched just slightly more than the monthly indicator, so the confidence of investors for "January effect 1 "was not as expected. This shows that the world's stock markets this year will probably continue to be difficult.
According to the British news agency Reuters, in the first week of 2016, Wall Street tottering, along with the decline to 8% of the MSCI indices make up the worst event in January.
This is clearly a difficult signal for the global stock markets entering the new year. Most major markets are trading week recorded greeting New Year pretty bad.
For the whole week (from 4-8 / 1), China's Shanghai Composite fell nearly 10%; Dow Jones and S & P 500 lost about 6.0%; Japan's Nikkei 225 lost 7%; Britain's FTSE-100 lost 5.3%; France's CAC 40 slipped 6.5%; Germany's DAX 30 and the "evaporation" of 8.3%.
So what is the main concern for the global stock markets?
Analysts said the first concern is the slowdown of the Chinese economy could cause a negative impact to the world economy.
Even in the first four days of 2016, the Chinese stock market has fallen dramatically causing the global financial turmoil. However, the real fear is the yuan devalued and China can not control the situation.
This scenario took place partly in the summer of last year and has emerged as a threat in the first two weeks of the new year. However, market sentiment has returned to stability when fears about China's economic situation is eased.
A major concern is that the status of the oil price plummeted. In the second week of January, although sometimes pop up but overall the stock market in the world has paralleled the decline in oil prices.
Analysts said oil prices plunge 10% can cause market disruption in the short term. Fortunately, the panic in the market did not take place.
In the context of low oil prices, the global economy and many businesses will benefit, as lower oil prices will increase real incomes, stimulate spending and help increase profits for businesses to use energy measure.
Historical experience shows that high oil prices is not an index to the positive impact of economic activities.
The global economic downturn from 1970 to date have occurred when seeing a sharp increase in oil prices, while most of the 30% decline in oil prices could boost growth and pushing the stock price higher.
However, despite these benefits can be clearly seen from the low oil prices, it appears that most investors now believe that oil prices could lead to a collapse in economic activity, including the stock market.
