Financial markets have been braced for more volatility this week amongst predictions from the world’s largest hedge fund that a “big shakeout” is coming.
Australian shares have fallen 0.4% after $4 trillion losses in the value of shares around the world last week following an US investor stating that the markets have become ‘complacent’. Following this, the US market went into an official correction after falling more than 10% from its record level in January.
The Australian stock market was the first to test it as one point was down 0.7%. South Korea’s Kospi was up by 0.9% whereas Hong Kong increased by 0.8%.
According to sources, the FTSE100 in London is expected to go up by 1.25% while Dow Jones average on Wall Street is due to rise by 0.7%.
Recently, Niederhoffer Hedge Fund saws its January gains of 16.2% being demolished due to the slump in the stock market, which left the fund’s performance flat for the year. The New York-based R.G. Niederhoffer Capital Management Inc.’s Diversified Hedge Fund flourished in January due to gains in stocks, alongside moves in fixed income, currencies and commodities.