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 keep tumbling
On Thursday, American equities kept diving because of a global sell-off backed by fears over strengthening bond gains, decelerating global surge and resuming trade clashes.
The S&P 500 futures dived by nearly 0.91%. The Dow futures lost 1.03%. As for the tech heavy Nasdaq 100 futures, they inched down by 0.92%.
The losses showed up after the largest dive for American equities for more than eight months on Wednesday because rallying American Treasury gains as well as widespread risk aversion justified a a move from risky assets.
Treasury gains started surging the previous week in the face of hopes for a faster than anticipated tempo of rate lifts from the major US bank because the American economy is firm enough.
The steep dive of US stocks gave Donald Trump a reason to have the Fed criticized for the bank’s plans to keep lifting rates in the nearer future. Trump also added that Wednesday’s stock market sell-off turned out to be a highly-anticipated correction.
FAANG equities generally went down. Amazon lost 2%, Netflix declined 1.5%, while Facebook headed south 1.6%.
Market participants were waiting for the September report on American consumer prices.
As for consumer prices, they’re anticipated to have ascended by 0.2% in September and also by 2.4% over 2017.
Meanwhile, in the European Union, the FTSE 100 rushed to correction territory in Great Britain, having gone down over 10% since hitting an all-time maximum in May. As for the VIX volatility index, it managed to reach its highest value since April.
Besides this, China’s stock market demonstrated its lowest settlement for nearly four years because fears over the trade clash with America kept putting pressure.
Gauging the US dollar’s purchasing potential against a pack of its key counterparts the USD index headed south by 0.4% hitting a one-and-a-half week minimum of 94.84.
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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