The slumping oil prices, worries about China and a slowdown in the U.S. economy have been plaguing stock markets since the beginning of the year. Global stocks entered into bear territory on Thursday, after the MSCI All-Country world index had fallen by 20 percent since May last year.
Germany’s blue-chip DAX index has fallen by 17 percent since the start of 2016 and nearly 30 percent since hitting its all-time high of 12,391 points last April. Concerns about the financial sector, in particular, sent the DAX cascading to a new 2016 low of 8,699 on Thursday. The index recovered slightly on Friday morning, gaining 1.6 percent to 8889 points.
In the midst of all this gloom and doom, it’s easy to overlook the positive fundamental data out there: growing economies in Germany, much of the European Union, and the United States. The German economy kept growing steady in the last three months of last year, expanding by 0.3 percent, the same growth rate as the preceding quarter, the Federal Statistics Office said on Friday.
The old market adage that says the way January starts will set the tone for trading at the end of December has held up a remarkable 77 percent of the time. However, not all the positive developments that fueled the seven-year upturn on the stock market can be cast aside for the rest of 2016.