Powerful JPMorgan CEO Jamie Dimon has no good news to bring to anxious investors who have seen stock market values on Wall Street drop dramatically this fall. Dimon states in an interview with CNBC that US stock markets could easily drop another 20%.and the US economy will fall into a recession in six to nine months.
– This is serious, Dimon points out to CNBC.
A recession is considered an economic decline for two consecutive quarters.
Jamie Dimon, CEO of the American JPMorgan Chase. (Photo: Jacquelyn Martin / AP / NTB)
The major Wall Street stock market indices all fell heavily throughout the fall. Tech stocks in particular have suffered a setback and the Nasdaq index has fallen about 20% since mid-August, while the Dow Jones index has fallen nearly 15% over the same period and the general S&P index 500 fell by 16% cents.
Of the major equity markets, only China has weakened, with the Hong Kong stock exchange down nearly 25% since this summer. Constant arrests by the crown and, more recently, US sanctions on technology exports it affects the markets of all of Asia, and in particular of China.
US stocks fell further on Monday evening and negative sentiment continued in full strength on Asian stocks overnight through Tuesday.
On Tuesday morning, the British central bank is also out of business and is rolling out the acquisitions program it launched quickly last week as the pound plunged and British pension funds were teetering on the brink. The Bank of England warns against “dysfunction” in the market after large UK government bond sales on Monday caused long-term interest rates to rise sharply and the central bank is now stepping in and buying different types of bonds. of state.
In an announcement, the Bank of England said the central bank “will act as a barrier to restore order in the markets”.
Oslo Børs opens
European equity markets also fell this fall, typically just over ten percent since mid-August. Oslo Børs is roughly on average here, down 11%, roughly in line with Stockholm, Frankfurt and Paris and slightly above the London stock exchange.
On Tuesday morning, Oslo Børs was down 1.2% at the opening. Vår Energy immediately dropped nearly ten percent in heavy trading when trading on the stock exchange began, after the company lowered its expectations for the future this morning. Vår Energy is the most traded stock on the exchange on Tuesday morning.
Biotech firm Softox is among the few winners on Tuesday and the share rises by more than ten percent after the company announced earlier in the morning that it secured a new NOK 25 million loan through a convertible loan.
The strong oil price, $ 96 a barrel for North Sea oil early Tuesday morning, therefore did not help Oslo Børs to hold up better than other European exchanges this fall. The price of oil then drops by about one dollar to 95 dollars a barrel during the morning.
The question now is whether and when equity markets in Europe will be further dragged down by Wall Street and ever higher interest rates in the US. High interest rates, global turmoil in the markets, high energy prices, geopolitical tensions, inflation and recession do not guarantee that investors will run the stock market with a stock full of venture capital in the first place.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via links, which lead directly to our pages. Copying or other forms of use of all or part of the content may only take place with prior written permission or as permitted by law. For additional terms look at her.
