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 stocks are multidirectional
On Friday, Asia-Pacific equities demonstrated different directions amid worries of trade wars. It’s due to the fact American leader Donald Trump approved duties on Chinese goods worth nearly $50 billion. Previously, the Chinese government told that it would adequately respond in case of new tariffs from the US.
The common currency went down abruptly yesterday after the ECB uncovered its plans to stop its program of purchasing bonds and pledged to keep interest rates for about a year.
Japan’s currency went down a bit after it became known that Japan’s key bank, based on the outcomes of the two-day gathering, left the deposit rate intact at -0.1%, while the target yield level of 10-year bonds was left at 0%. Additionally, the major bank still intends to purchase government bonds at an annual rate of about Y80 trillion.
The Australian market keeps ascending mostly due to upbeat signals from Wall Street as well as higher commodity prices.
As for the banking sphere, Westpac, National Australia Bank, Commonwealth Bank and ANZ Banking managed to ascend in the range 0.6%-1.3%.
Besides this, Rio Tinto went up by nearly 1%. As for BHP Billiton, it gained 0.5%, Fortescue Metals edged up by 0.1% backed by leaping iron ore.
BHP Billiton reported it’s on the verge of spending $3.9 billion for the purpose of developing its majority stake in South Flank, thus generating over 600 permanent jobs.
Besides this, the gold digger Evolution Mining ramped up its capitalization by over 1%, Newcrest Mining gained more than 2% right after gold got to its monthly maximum.
The Japanese market demonstrated good profits due to upbeat replies from Wall Street as well as a weaker Japanese yen.
Among the key exporters, the equities of Canon rallied by 0.2%, Panasonic soared by 0.3%, while Mitsubishi Electric and Sony lost nearly 1%.
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.
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.