Why is the global economy suffering so much turbulence?

Discussion in 'Market News' started by Lily, Jan 24, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
    Likes Received:
    A tumbling oil price and see-saw financial markets are clear symptoms of economic instability. But what’s the cause?
    The new year kicked off with a global stock market and commodities rout over worries about the global economic outlook and China’s economy in particular. Plunging prices recovered at the end of last week, partly on reassurances of more stimulus to come from the European Central Bank, but traders are bracing for more volatility. At one point, oil prices fell below $28 per barrel – a 25% drop since the start of the year – on the combined effects of a supply glut and waning demand. Investors have dumped riskier stocks in favour of safe-haven assets, such as gold and government bonds. The FTSE 100 index of London-listed shares bounced back but is still down more than 5% since the start of the year.

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