Closed on Monday for Martin Luther King's Day, the markets received their first chance on Tuesday to respond to China's 2018 GDP report on the World Bank economic forum in Davos, Switzerland. Both reports were published on Monday
But the report made it clear that Brexit and the unresolved trade war between the US and China remain the biggest known risks to growth.
Also on Monday, China reported that its economy grew by 6.6% in 2018. This is the weakest annual performance since 1990. They also began to feel the consequences of the trade war with the United States, which led to new Chinese export tariffs of over $ 250 billion.
And Tuesday, the National Association of Realtors announced that sales of existing homes in the US fell 6.4 percent last month. This marks the weakest performance since November 2015. House sales have fallen for most of 2018 – but nothing is close to the drama of the fall of December. Existing house sales dropped 10.3% for the year.
The Federal Reserve closely monitors the housing market for signs of deterioration as it weighs its next move. It could continue to raise interest rates to fight inflation or delay its campaign to raise interest rates to avoid a slowdown in the economic growth period, obviously in recent years.
As the earnings season is underway, investors will look at corporate sales and profit growth as signs of a sluggish economy. , but their shares fell on Tuesday, driven by the wider market.