The decline that started in the stock markets last week took a terrible form as soon as the market opened on Monday. Indian stock markets are trading with a decline of more than 3 percent, while Japan’s stock market index Nikkei 225 fell by more than 11 percent. Common investors are trying to find out the reason for this terrible decline, what exactly happened that caused havoc in the markets all over the world.
The roots of the devastation in the markets of the world are linked to America
The roots of this havoc in the stock markets of the whole world are connected to America. Actually, the latest data of America has fueled the spark of economic recession. Here we will know about those 5 reasons, due to which there is havoc in the stock markets of the whole world today.
US unemployment rate
The unemployment rate in America has reached 4.3 percent. This is the worst unemployment figure in America since October 2021.
The IT industry is in a bad shape
There is non-stop layoff going on in the American IT sector. Due to which the IT industry of the whole world has come under heavy pressure.
Manufacturing PMI data at 8-month low
Manufacturing PMI (Purchasing Managers Index) data in the US fell to 46.8 in July as compared to 48.5 in June. Manufacturing PMI has reached an 8-month low due to a sharp decline in new orders received by the US.
Japanese Yen strengthens against the US dollar
The Japanese currency Yen has shown strength against the US dollar. Due to this, the possibility of increase in selling of dollar has increased.
Growing tension in the Middle East
The increasing tension between Israel and Hamas, Iran is also having a bad effect on the stock markets around the world.
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