The Dow Jones gained 1% in final day trading for 2018

The final day of trade ended on a positive note, with The Dow Jones gaining 1%, saying goodbye to the worst year for US stocks in 10 years.

Dow up 1% final day trading Source: Bloomberg

The final day of US trade ended on a positive note on Monday, with The Dow Jones gaining 1%, ending tthe worst year for US stocks in a decade.

While end of day trading saw The Dow gain more than 1%, experts say volatility will likely remain throughout 2019.

Brexit worries, and on-going China and US trade tensions could see markets slide, with experts predicting better stability in the second half of 2019.

IG market analyst, Kyle Rodda ays the year of 2018 belonged to the bearish.

‘The S&P500 found itself 6.24 % lower for the year, the FTSE 100 was down 12.48 % and the DAX closed 18.26% in the red.

Furthermore, in what comes as little surprise given the geopolitical backdrop, Chinese equities were among the worst performing, finishing well in bear market territory with a 25.31 % loss for the year.’ Mr Rodda said.

Market volatility expected to roll into 2019

China-US trade tensions combined with a series of interest rate hikes by the Federal Reserve have pressured stocks and seen markets plunge in December 2018 trading.

2019 indicates there could be trouble more ahead according to analysts, predicting volatility likely to continue in the new year.

Price action is pointing to an economic slowdown with predictions of a dovish Fed, and the prospect of a recession in the next two years, according to IG market analyst, Kyle Rodda.

‘The theme for the start of 2019 is how do markets respond to the dual issues of a growth slow-down coupled with tighter financial conditions. From this basis, the second and tertiary geopolitical concerns relating to the trade-war and Chinese growth, along with Brexit, take on a greater significance.’ Mr Rodda said.

Australians stocks cautious in first day trade of 2019

As the first day of trade begins, Australian stocks were traded cautiously, with the ASX 200 opened slightly 0/14% lower at 5,656.4 points

Analysts however remain hopeful that the first session of 2019 could see investors factoring the US-China talks, with a positive outlook after Trump and Chinese president Xi Jinping had reportedly progressed talks.


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