U.S. Markets

World stocks enters technical 'bear market', down 20 percent from 2015 peak

Traders work at the stock exchange with the share price index DAX board pictured in background in Frankfurt, Germany, November 4, 2015. REUTERS/Ralph Orlowski

LONDON (Reuters) - MSCI’s benchmark global stock index, which covers 46 countries, entered a technical ‘bear market’ on Wednesday, as its fall since an all-time peak back in April 2015 reached 20 percent.

The All-Country World Index as it is formally known has dropped more than 12 percent since the start of the 2016 alone, driven by fears about a slump in oil markets and a slowdown in economic growth in countries such as China.

Analysts traditional term a 20 percent drop in assets like equities a ‘bear market’ reflecting a view that the dominate trend in the market is downwards, rather than simply a correction during a longer-term upward move.

Reporting by Marc Jones; editing by Karin Strohecker