The so-called “stock market bloodbath” has continued on Friday with major indices falling down to the lows of the last October. What's going on?
American equities generally dip
On Friday, American equities went down in midday trade because another sink in crude prices put pressure on energy shares.
The stock market faced a holiday-shortened trading session because of the Thanksgiving day.
The Dow headed south by nearly 0.56%. The S&P 500 index dipped by 0.46%. As for the tech-heavy Nasdaq composite, it slumped by about 0.11%.
Crude declined over 6%. It became possible because fears about a supply glut persisted. As for Exxon Mobil and Chevron, they slumped over 3%.
Meanwhile, the energy sector has gone down by 16.5% since the beginning of October. It turned out to be the worst performing S&P sector, with its biggest two-month sink since September 2011.
Besides this, retail equities are closely watched. Investors are eager to know if the companies are capable of overcoming an underwhelming retail earnings season.
In addition to this, Walmart managed to head north by over 1%. However, Amazon.com went down a bit.
Market participants are going to closely watch the G20 summit to be held in Buenos Aires, exactly where American leader Donald Trump and his Chinese rival Xi Jinping are anticipated to hold negotiations in the face of a worsening trade clash between the two leading economies that has put pressure on financial markets and generated fears of a global meltdown.
The high-stakes gathering comes as the current presidential administration demonstrates little sign of backing down in its demands as well as rhetoric. On the contrary, on Friday, Chinese Vice Commerce Minister Wang Shouwen told that trade negotiations need to be mutually beneficial and equal.
Contributing to fears, the Wall Street Journal informed that the American authorities were trying to convince wireless as well as Internet providers in allied countries to avoid using telecommunications equipment from China's well-known company Huawei Technologies.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
Will coronavirus continue keeping the markets in fear? What releases should we wait for? Find out in the news!
The British pound has increased in value over the course of the past week in line with an ongoing improvement in investor sentiment.
Economic activity in service sector in the Euro zone and the UK is on its lowest rates since 2009.
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