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?
Asia-Pacific shares mostly ascend
On Tuesday, stock indexes of the Asia-Pacific region mostly gained and it can be explained by the fact that US President Donald Trump along with North Korean leader Kim Jong-un finally signed a promising document, which calls for working together to create a lasting and steady peace regime on the Korean Peninsula.
In addition to the meeting in Singapore, market participants also expected clues from three major financial institutions, which are expected to have meetings this week.
The US key bank will nearly 100% have its rates lifted again when it meets on Wednesday. Besides this, on Thursday the European Central Bank will report that by the end of this year it’s going to start disrupting its ambitious bond purchase program.
In addition to this, the BOJ will also have its two-day political gathering finished on Friday. Financial analysts don’t expect a change beyond the soft policy of the financial institution.
As for Chinese stock indexes, they concluded up, and the benchmark Shanghai Composite managed to ascend by up to 0.89%. In Hong Kong, the Hang Seng index went up by about 0.13% at the end of the trading session.
Additionally, Japanese stocks got to a three-week maximum after American President Trump told that he managed to develop a positive relationship with North Korean leader Kim Jong-no in Singapore.
Moreover, Australian stocks demonstrated moderate gains due to the historic meeting of North Korean dictator Kim Jong-un and American President Donald Trump.
As a matter of fact, the conglomerate Wesfarmers ramped up its capitalization by approximately 1.3% after it reported the completion of the sale of its UK business Homebas. As for healthcare as well as industrial reserves, they concluded mostly up, while CSL and Transurban Group stepped up their capitalization by respectively 1% and 1.5%.
Weaker prices for base metals and iron suppressed the value of equities in mining companies.
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!
RBA Rate Statement is released on Tuesday at 07:30 MT time.
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Today the US nonfarm payroll data will be reported that could cause fluctuations of the market.