Report experts: 2017 will be a year of global crisis

Baku. 13 December. REPORT.AZ/ Major part of 2017 will feature serious crisis in global markets. 

Report’s experts predict abrupt decline in stock markets, which will stipulate the crisis. Wave of massive sales expected in US stock markets will hit developed and developing countries all over the world. Statements by president-elect Donald Trump during last month on fiscal expansion and cut of taxes fired US stock market 10% up.

Notably, Trump will officially inaugurate on January 20. Nevertheless, his above-mentioned decisions have already found its reflection in soaring shares of US companies. Experts are not yet sure Donald Trump will be able to keep his words related raising investments and cutting taxes. It means if he will act slower than promised, the stock markets can slump faster. Beside this, stock markets will soon come under the pressure of rising interest rates. Global economic downshift will push investors towards US federal securities. Federal Reserve (Fed) is expected to raise interest rate in its meeting tomorrow. If Fed does the same in March 2017, it will shake stock markets.

Notably, rising oil prices, as a result of OPEC’s Vienna decision to cut output, will boost inflation and decrease unemployment in US, which will be another reason for Fed to raise interest rate.

Global crisis and strengthening US dollar will force the oil prices down in second half of 2017, which will be eventually accompanied by financial shortage in oil exporting countries. We cannot exclude oil prices to slump to 30 USD/barrel in second half of the year. But the stability will be restored by the year-end. The processes in financial market will probably of moderate character in 2018.