After a bullish 2017, 2018 was
nothing of that. It will be a year many investors will want to forget. This is
because most projections from analysts have not worked out well. This article will
highlight a few of the most important market events that happened this year.
Trade War
Trade was the biggest news this
year. It all started early in the year when the Trump administration started
imposing tariffs on key imports. The first set of tariffs were of the home
appliances such as air conditioners. He then ramped it up with those of steel
and aluminum. Next came his battle with China. In this battle, the president
has so far imposed tariffs worth more than $260 billion. China has responded
with targeted tariffs worth more than $70 billion. Two weeks ago, the two
countries agreed on a truce as they negotiate a deal acceptable to both of
them. This issue will continue in the coming year as the back and forth between
the two countries continue.
On a positive note, the trade
negotiations between United States, Canada, and Mexico produced results in the
USMCA agreement. This is an agreement that will replace NAFTA. Traders will
continue to focus on the negotiations between the US and the European Union.
Brexit
Brexit was another important
topic this year. The UK and the European Union continued to negotiate on a deal
that will be acceptable to the respective parliaments. The two countries came
to an agreement in November. This deal was ratified by the European Union but
faced challenges in the UK House of Commons. This is because the members said
that the deal was very friendly to the EU. In the coming year, this will be a
closely-watched issue as the UK is expected to leave the EU in March.
Crude Oil
Crude oil started the year in a
bullish manner. In October, the price reached a three-year high. This was an
important milestone for the oil producers and was because of the expectations
that a withdrawal of Iran will lead to shortage. To fill the gap, the oil
producers opened their taps leading to significantly lower oil prices. The
intervention was curtailed by the killing of a Saudi dissident, Jamal Khashoggi
by Saudi Arabia.
$1 Trillion Companies
This year marked the first time
companies crossed the $1 trillion market valuation. The first company to hit
the milestone was Apple. It was then followed by Amazon. However, the third
quarter performance and the lowered forward guidance lowered the companies
valuation. Amazon and Apple are all valued below $900 billion.
Mid-Term Elections
In November, the United States
went to the mid-term elections. These were important elections because they
changed the composition of congress. Senate republicans increased their
numbers. This presents a major risk to the Trump administration in the new
year. This is because congress will initiate multiple investigations that will
detract his agenda.
Italian Elections
This year, Italians elected
populist leaders that have gone to war with Brussels. This is because the
budget they proposed went far and above the required deficit target. In an
extraordinary move, the European Union rejected the proposal. The rise in
populism will likely continue in the coming year especially in Europe.
Cryptocurrencies
Another big story for the year
was the decline in the cryptocurrencies industry. The currencies have lost more
than 85% of their value in the biggest sell-off of the year. This happened as investors
lost confidence in the industry.
The post 2018 Review: A Look at the Top Market Stories appeared first on Forex.Info.