World stock exchanges lose $ 4 trln overnight

Baku. 7 February. REPORT.AZ/ Sharp sales on US stock exchanges on February 5 splashed to the global capital market. As a result, total value of shares in the stock exchanges collapsed by $ 4 trln.

Report informs citing the Habertürk, VIX volatility index has exceeded 50 points for the first time since August 2015.

Analysts have shown five major reasons for the sharp decline in US stock exchanges:

1) Inflation acceleration in the US;

2) High probability of Fed's discount rate increase by 4 times in 2018;

3) Expected sales due to increase in US stock exchange indices about 4 times since 2009;

4) Further acceleration of sales as a result of the launch of robot programs;

5) The spread of herd behavior to the broader investor layer.

Analytical Group of Report News Agency believes, gradually, the shares will fall softly on stock exchanges. As a result of increase in rates, the investors will turn to bond market and stay there for a long time.

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