A trader works on the floor of the New York Stock Exchange shortly before the end of the day's trading. (Photo : Reuters)
World stock market indexes dropped on Nov. 9 following a disappointing trade data from China that raised concerns about the decline of global trade growth. Three major United States stock indexes fell by one percent while shares in Europe fell by 1.1 percent.
Following the drop on world equity indexes, the price of oil recorded losses for the fourth consecutive day. In the commodities market, the US crude oil future dropped by almost one percent to $43.87 per barrel.
In China, trade data shows that its exports fell for the fourth consecutive month. Imports also dropped leaving the country a record high in terms of trade surplus with $61.65 billion. It is important to note that the US is one of China's biggest trading partners.
Another problem is brewing in the horizon as the Organization for Economic Co-operating and Development decreased its 2015 global growth forecast again. On the other hand, the organization said that the US Federal Reserve should be able to raise interest rates once economic recovery gets stable.
Longbow Asset Management chief executive officer Jake Dollarhide told Reuters, "There are short-term, myopic concerns about a Fed rate hike. Bond and stock prices will decline when the Feds makes that first announcement, but, ultimately, stocks will thrive because it will prove the U.S. economy is healthy enough to stand on its own."
Following the Nov. 9 global growth drop, the Dow Jones Industrial Average fell 179.85 points. The S&P 500 fell 20.62 points and the Nasdaq Composite fell 51.82 points, according to The Wall Street Journal.
