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 stock funds report the greatest withdrawals in five weeks
For the last week American fund investors managed to diminish their exposure to stocks and they bought bonds, as Lipper data disclosed on Thursday. It’s because saber-rattling between North Korea and America shook market sentiment.
In America, for the seven days through August 9 stock funds reported $2.8 billion in withdrawals, thus marking the most impressive outflows for five weeks.
Almost $31 billion shifted into quite low-risk money market funds, which is the strongest outcome since 2013. Nearly $4 billion moved into municipal as well as taxable bonds.
Market participants took that defensive crouch because during the week America and North Korea exchanged threats. For instance, on Tuesday, Donald Trump told that aggression from Pyongyang would be repelled with fury and fire like the world has never observed. On the contrary, North Korea's state media informed that the country considered launching missiles toward the US Pacific territory Guam.
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!
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