Dow Jones forecast suffers due to data from China

Dow Jones Forecast Suffers Due to Data from China

The performance of the economy, even in the US, maybe in peril because of China’s own economic issues. China’s economy, having such close links to the world in general and the US in particular, has a great effect on the world economy. As such, we have seen recent effects on the Dow Jones Industrial Average due to recent economic data from China. Unfortunately, this has been to the detriment of the Dow Jones forecast, which has gone down as a result. In other news, oil has been doing well. Prices have shot up due to recent cuts in production by both Russia and Saudi Arabia, major oil producers.

A recent survey from a private company had poor indicators for the health of Chinese businesses. It assessed that the amount of activity in the service sector dropped to great lows this last month, affecting the Dow Jones forecasts. We haven’t seen such low numbers since the end of last year. At the same time, the growth in new businesses has also been low. Additionally, demand has not grown quickly either, at a relatively slower rate than last year.

Other markets are not necessarily doing well either. Growth in the Eurozone has been slowing considerably, and factory orders in the US have been dropping.

The Impact of Chinese Data on The Markets

The Chinese data has already had a noticeable impact. The Dow Jones itself has dropped by 0.20% over the course of one day, and the future Dow Jones forecast is suspect. Even the Dow Jones technical analysis is not looking good. Meanwhile, the Nasdaq fell 0.35%, while the S&P 500 dropped 0.30%. Both are down even lower than the Dow Jones. So, in the current climate, if you want to invest in Dow Jones, we would recommend you wait.

In China itself, the Hang Seng Index in Hong Kong fell an astonishing 2.10%, showing low confidence.

As for oil prices, the WTI prices for oil have reached their highest point for nine months. It rose by 2.00% in one morning, at $87 per barrel. Brent crude oil also reached a high, rising to $89.

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