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 shares keep soaring
On Monday, Wall Street opened up due to a dive in tension in the trade relations between China and America. At the beginning of the week, the market is still demonstrating an uptrend.
The Dow index soared by 0.38%, the S&P 500 managed to acquire 0.38%, while the high-tech Nasdaq 100 gained by 0.43%.
On Monday, market participants are ready to proceed with the rate hike after a steep soar in quotations by more than 2% the previous week, which turned to be the largest jump in the week since March. The Dow index is ready to ascend the eighth consecutive session.
Investor sentiment has improved in the face of the apparent warming in the trade relations between China and the United States right after US President Donald Trump told at the weekend that he’s on the verge of helping Chinese telecommunications company ZTE to resume work.
This statement was made on the eve of the second round of negotiations between America and China, which will burst out on Tuesday. However, Beijing indicated that it’s not going to change its current position in the trade conflict.
On Monday, there aren’t any plans to publish any crucial American reports, so market participants will focus on information on the pace of further interest rate lift by the Federal Reserve this year.
The financial markets have already fully taken into account the lift of the interest rate as a result of the Fed gathering that will end on June 13. As for the next lift, it’s forecast for September. However, investors are still arguing whether the fourth rate lift will occur this year in December or not.
The evergreen buck keeps diving against the basket of other key currencies. The US dollar turns to be cheaper for the fourth consecutive session.
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!
WTI oil prices jumped up after Donald Trump’s 2 tweets
Today the US nonfarm payroll data will be reported that could cause fluctuations of the market.
WTI was at $20 per barrel just in the beginning of the day. Currently - above 25$.