{"id":629848,"date":"2018-04-03T04:06:42","date_gmt":"2018-04-03T04:06:42","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/04\/03\/are-we-staring-into-the-abyss-of-another-global-market-correction\/"},"modified":"2018-04-03T04:06:42","modified_gmt":"2018-04-03T04:06:42","slug":"are-we-staring-into-the-abyss-of-another-global-market-correction","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/04\/03\/are-we-staring-into-the-abyss-of-another-global-market-correction\/","title":{"rendered":"Are we staring into the abyss of another global market correction?"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-02\"><\/a> <strong>It\u2019s looking like it could be an interesting week for equities around the world: A slump in tech stocks sparked by a backlash against technology companies gained steam yesterday<\/strong>, putting more pressure on markets already weighed down by fear of a global trade war. The S&P 500 lost 2.2% yesterday and the tech-heavy Nasdaq tumbled 2.9%, prompting a sell-off in Asia today: Shares from Australia to Japan, Korea and China were uniformly <a href=\"https:\/\/www.cnbc.com\/2018\/04\/02\/asia-markets-trade-tech-stocks-currencies-and-rba-in-focus.html\">down in trading today<\/a>.<\/p>\n<p><strong>Yesterday\u2019s selloff in Amreeka puts US shares into correction territory as the second quarter of the year begins <\/strong>(see graph, above). In fact, it\u2019s the second time shares have gone into correction territory so far this year. Check out <a href=\"https:\/\/www.reuters.com\/article\/us-usa-stocks\/wall-street-tumbles-on-tech-sector-trade-war-worries-idUSKCN1H90XP\">this Reuters market report<\/a> to get oriented. The story is getting sufficient traction in western markets that it\u2019s now front-page news on the <a href=\"https:\/\/www.nytimes.com\/2018\/04\/02\/business\/stock-markets-technology-trade.html\">New York Times<\/a> as of dispatch time. (A correction is when shares are 10% from a recent market peak.)<\/p>\n<p><strong>The EGX 30 bucked the trend<\/strong>, closing up 0.5% yesterday.<\/p>\n<p><strong>The VIX is up 18%<\/strong>, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-04-02\/u-s-tech-sell-off-set-to-roil-asia-stocks-yen-higher-markets\">Bloomberg reports<\/a>, referring to the CBOE Volatility Index, while gold and the Japanese yen have gotten a boost.<\/p>\n<p><strong>Why are stocks tumbling? <\/strong>US shares are taking it on the chin amid a <a href=\"https:\/\/www.wsj.com\/articles\/technology-shares-plunge-again-amid-growing-backlash-1522689491\">backlash against technology<\/a> and a <a href=\"https:\/\/www.nytimes.com\/2018\/04\/02\/business\/china-us-trade-action-markets.html\">the prospects of a trade war<\/a> between the US and China. Tech stocks are being hammered by everything from the world waking up to the fact that Facebook\u2019s approach to privacy is evil, to Trump attacking Amazon on social media and electric car maker Tesla\u2019s handling of a fatal crash of a self-driving car.<\/p>\n<p><strong>Why are journalists suddenly writing as if shocked to wake up and find that most emerging tech companies aren\u2019t yet profitable?<\/strong> From the <a href=\"https:\/\/www.ft.com\/content\/a03f48fc-36ba-11e8-8eee-e06bde01c544\">Financial Times<\/a>: \u201cTesla, like Amazon and Uber, has been heavily dependent on investors\u2019 willingness to fund expansion without profits, said Jeffrey Pfeffer, a management professor at Stanford University. \u2018It\u2019s sort of a confidence game \u2014 as long as people believe, the companies can raise money,\u2019 Mr. Pfeffer said. \u2018So image is everything.\u2019\u201d<\/p>\n<p><strong>What should you expect? <\/strong>Nobody knows. <a href=\"https:\/\/www.cnbc.com\/2018\/04\/02\/stocks-broke-key-level-in-sell-off-that-signals-potential-for-bigger-correction.html\">Equities strategists are all over the board<\/a>, with some saying the selloff is largely a US-only phenomenon, while others pointing to a wider problem because of the prospect of a global trade war. Others still feel that the current selloff is, \u201ctoo bad, because I think underlying this market, the fundamentals are very strong.\u201d<\/p>\n<p><strong>This much is clear: It\u2019s going to be a bit messy for a while longer. <\/strong>Sabre-rattling over trade got louder as China increased tariffs by up to 25% on 128 US products, from frozen pork and wine to certain fruits and nuts, in response to US duties on imports of aluminum and steel, <a href=\"https:\/\/www.reuters.com\/article\/us-usa-trade-china\/china-hits-u-s-goods-with-tariffs-as-sparks-of-trade-war-fly-idUSKCN1H81J3\">Reuters reports<\/a>. And it looks like it\u2019s not going to cool down anytime soon, as the Trump administration <a href=\"https:\/\/www.reuters.com\/article\/us-usa-trade-china-technology\/trump-to-unveil-china-tariff-list-this-week-targeting-tech-goods-idUSKCN1H90C3\">looks set to announce<\/a> on Friday a list of China tech products it plans to slap with tariffs worth as much as USD 60 bn.<\/p>\n<p><strong>Oil is taking it on the chin with stocks: <\/strong>This appears to be contributing to a 2% drop in oil prices to USD 67.60 per barrel, <a href=\"https:\/\/www.reuters.com\/article\/us-global-oil\/oil-falls-2-percent-on-russia-output-rise-potential-saudi-price-cut-idUSKCN1H9020\">says Reuters<\/a>. \u201cIncreasing trade friction between China and the U.S. is likely to rock global markets and tarnish bullish sentiment in crude oil markets,\u201d said Wang Xiao of Guotai Junan Futures.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s looking like it could be an interesting week for equities around the world: A slump in tech stocks sparked by a backlash against technology companies gained steam yesterday, putting more pressure on markets already weighed down by fear of a global trade war. The S&#038;P 500 lost 2.2% yesterday and the tech-heavy Nasdaq tumbled [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":629849,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7204],"tags":[72,74],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-629848","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-what-were-tracking-today","tag-enterpriseam","tag-what-were-tracking-today","wpautop","entry"],"acf":{"mongo_id":"d08c645a-20a0-4a07-a65f-26afcf93989a","order":"0","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2018\/4\/865.jpg","photo_position":"above","related_issue":[629846],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Are we staring into the abyss of another global market correction? - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2018\/04\/03\/are-we-staring-into-the-abyss-of-another-global-market-correction\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are we staring into the abyss of another global market correction?\" \/>\n<meta property=\"og:description\" content=\"It\u2019s looking like it could be an interesting week for equities around the world: A slump in tech stocks sparked by a backlash against technology companies gained steam yesterday, putting more pressure on markets already weighed down by fear of a global trade war. The S&amp;P 500 lost 2.2% yesterday and the tech-heavy Nasdaq tumbled [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2018\/04\/03\/are-we-staring-into-the-abyss-of-another-global-market-correction\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2018-04-03T04:06:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2018\/4\/865.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/04\/03\/are-we-staring-into-the-abyss-of-another-global-market-correction\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/04\/03\/are-we-staring-into-the-abyss-of-another-global-market-correction\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Are we staring into the abyss of another global market correction?\",\"datePublished\":\"2018-04-03T04:06:42+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/04\/03\/are-we-staring-into-the-abyss-of-another-global-market-correction\/\"},\"wordCount\":561,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/04\/03\/are-we-staring-into-the-abyss-of-another-global-market-correction\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2018\/4\/865.jpg?fit=%2C&ssl=1\",\"keywords\":[\"EnterpriseAM\",\"What We're Tracking Today\"],\"articleSection\":[\"What We're Tracking Today\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/04\/03\/are-we-staring-into-the-abyss-of-another-global-market-correction\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2018\/04\/03\/are-we-staring-into-the-abyss-of-another-global-market-correction\/\",\"name\":\"Are we staring into the abyss of another global market correction? 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Before we get this show on the road, a quick warning from your friendly neighborhood weather service: PSA #1- Close your windows \u2014 it\u2019s going to be another dusty day. The Egyptian Meteorological Authority is predicting another sandstorm today\u2026","rel":"","context":"In &quot;What We're Tracking Today&quot;","block_context":{"text":"What We're Tracking Today","link":"https:\/\/enterpriseam.com\/egypt\/category\/what-were-tracking-today\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":623262,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/10\/25\/egyptian-exchange-slumps-as-global-share-selloff-sees-us-markets-erase-the-years-gains\/","url_meta":{"origin":629848,"position":1},"title":"Egyptian Exchange slumps as global share selloff sees US markets erase the year\u2019s gains","author":"enterpriseam admin","date":"25 October 2018","format":false,"excerpt":"** #4 We look set to end the week on a reasonably quiet note here at home \u2014 the EGX excepted. The benchmark EGX30 shed nearly 2.5% yesterday on moderate turnover, bringing its year-to-date return to -11.8%. Wednesday\u2019s performance came as a global share sell-off sent the Nasdaq into correction\u2026","rel":"","context":"In &quot;What We're Tracking Today&quot;","block_context":{"text":"What We're Tracking Today","link":"https:\/\/enterpriseam.com\/egypt\/category\/what-were-tracking-today\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2018\/10\/2261.png?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":542872,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/01\/20\/nasdaq-falls-into-correction-as-tech-exit-continues-early-swvl-investors-eye-africa-spac\/","url_meta":{"origin":629848,"position":2},"title":"Nasdaq falls into correction as tech exit continues + Early Swvl investors eye Africa SPAC","author":"enterpriseam admin","date":"20 January 2022","format":false,"excerpt":"Nasdaq enters correction as Wall Street sell-off continues: The sell-off in US tech stocks continued yesterday, leaving the Nasdaq down 10.7% from its November peak and officially putting it in correction territory. The tech-heavy index fell another 1.2% during the trading session as investors continued to exit growth stocks in\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":623412,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/10\/30\/is-the-nine-year-bull-run-coming-to-an-end\/","url_meta":{"origin":629848,"position":3},"title":"Is the nine-year bull run coming to an end?","author":"enterpriseam admin","date":"30 October 2018","format":false,"excerpt":"** #3 Wall Street went on a wild ride yesterday as investors \u201canticipate the end to a nine-year bull run\u201d amid trade and tech fears: US equities closed lower again yesterday after the \u201cwildest session since February\u2019s plunge\u201d the Financial Times says. Traders are \u201cfleeing the shares that were the\u2026","rel":"","context":"In &quot;What We're Tracking Today&quot;","block_context":{"text":"What We're Tracking Today","link":"https:\/\/enterpriseam.com\/egypt\/category\/what-were-tracking-today\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2018\/10\/2317.png?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":595717,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/08\/05\/what-were-tracking-on-05-august-2019\/","url_meta":{"origin":629848,"position":4},"title":"What we\u2019re tracking on 05 August 2019","author":"enterpriseam admin","date":"5 August 2019","format":false,"excerpt":"It\u2019s PMI day: The Emirates NBD purchasing managers\u2019 indexes for Egypt, the UAE, and Saudi Arabia are due out this morning at 6:15 am CLT. Non-oil business activity had remained in contraction territory in June, but the slowdown rate was softer than the month prior. You can find the PMI\u2026","rel":"","context":"In &quot;What We're Tracking Today&quot;","block_context":{"text":"What We're Tracking Today","link":"https:\/\/enterpriseam.com\/egypt\/category\/what-were-tracking-today\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":621888,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/11\/21\/what-were-tracking-on-21-november-2018-are-markets-melting-down\/","url_meta":{"origin":629848,"position":5},"title":"What we\u2019re tracking on 21 November 2018: Are markets melting down?","author":"enterpriseam admin","date":"21 November 2018","format":false,"excerpt":"It\u2019s a grim morning out there, ladies and gentlemen, as we head back to the trenches after a beautiful midweek holiday. To wit: US and European equities cratered yesterday, with American equities erasing their gains for the year as a rout kicked off by tech shares deepened and edged into\u2026","rel":"","context":"In &quot;What We're Tracking Today&quot;","block_context":{"text":"What We're Tracking Today","link":"https:\/\/enterpriseam.com\/egypt\/category\/what-were-tracking-today\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2018\/11\/567.png?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/629848","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=629848"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/629848\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/629846"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/629849"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=629848"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=629848"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=629848"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=629848"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=629848"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}