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?
Asian equities are mixed
On Friday, Asian stock markets were generally mixed after China posted better-than-anticipated industrial output as well as retail sales, although investment headed south to a fresh minimum.
In August, China’s industrial output tacked on by 6.1% in contrast with the same period of 2017. Retail sales in this Asian country gained 9%, beating market expectations. At the same time, the fixed asset investment surge speeded down to 5.3% for the first eight months this year, which is below Reuter’s estimate of 6%.
The Chinese economy is gradually speeding down. However, it’s still good at this moment. The Chinese authorities aren’t going to have the direction of deleveraging changed. Instead, they intend to change its tempo due to the fact the country’s economy is firm enough.
The Shanghai Composite went down by 0.16% in China, while SZSE Component declined by 0.58%. As for the Hang Seng Index, it managed to add 0.84%.
Having met with French Foreign Minister Jean-Yves Le Drian, Wang Yi, China’s State Councilor told that the world trade system should be reformed.
China backs necessary reforms as well as perfection of the current system. Additionally, Chine expects the WTO to become more effective, fairer, and more rational.
Wang Yi stressed that the purpose of the reform should be to enable countries to enjoy the benefits of globalization more fairly, without extending the differences between the north and the south.
His remarks showed up right after the resumed trade negotiations in Washington to prevent the trade war jitters from escalating, and American leader writing on Tweeter that the US government wasn’t forced to make a deal with the Asian counterpart.
Japan’s Nikkei 225 managed to extend profits gains, leaping by 0.95%. In South Korea, the KOSPI index ascended by 1.26%. The S&P/ASX 200 rallied by 0.7% in Australia.
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 $20 per barrel just in the beginning of the day. Currently - above 25$.