The stock market of Tuesday, December 18, 2018

(Photo: imago / Sven Simon)

European stock markets are likely to start trading today. The negative demands of Wall Street and Asia are again a burden. the Dax pre-quoted down 0.2 percent to 10,748 points. Already Monday, he had finished with a loss.

the Russell 2000 – a globally recognized stock market index for small caps – has corrected more than 20% of its highest level and is therefore technically in a bear market. in the Japan the government has the Growth forecast lowered – this only supposes that the Japanese economy is growing by 0.9% during the current year. Previously, the forecast was 1.5%.
The reduction in forecasts highlights investors' existing growth concerns.

In the morning the German Ifo Business Climate Index published. Analysts expect the index to fall to 101.6 from 102.0 previously. This would be the fourth in a row. Next to it is the beginning Central Economic Work Conference, a kind of economic commission of the Chinese Communist Party, in sight. Observers do not rule out the Chinese authorities could announce new support measures to strengthen the economy.

Its shadow throws forward US Federal Reserve's monetary policy decision Wednesday. A rate hike – the fourth of the current year – is considered accepted. The interest rate outlook for 2019 should therefore be more interesting. According to recent central bank dove rumors, it is not excluded that US monetary authorities could lower their interest rate expectations.