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 climb up
On Thursday, Asian markets generally gained due to the fact that China told that it would naturally fight back the latest round of American duties on China’s products.
Eventually, the Shanghai Composite as well as the Shenzhen Component bounced off and gained 1.7% and 2.8% respectively. The Hang Seng Index soared by 0.9% too in Hong Kong.
In China, on Wednesday, the Ministry of Commerce uncovered a 25% duty on $16 billion worth of American products including passenger vehicles and motorbikes. The Chinese government’s announcement showed up after the current US presidential administration officially confirmed a mind-blowing list of $16 billion worth of China’s products that would be impacted with duties. The Chinese Ministry of Commerce told that Washington’s move can’t be regarded as reasonable and that China will have to fight back.
In addition to this, on Wednesday, the China Passenger Car Association told that car sales in China headed south for the second month in a row. As a matter of fact, in July, retail sales of vehicles, SUVs, as well as multipurpose cars, slipped by 5.4% hitting 1.6 million units in contrast with June’s 3.7% decline, thus trimming the year-to-date surge in the world’s number one car market to nearly 2%.
A decelerating economy and also a tit-for-tat trade conflict with America were labeled as the headwind for the auto sales in this leading Asian country.
At the same time, the Nikkei 225 dipped by 0.2% in Japan after data disclosed that Japan’s core machinery orders shrank by nearly 8.8% in June, which is the fastest tempo for six months against the backdrop of the median forecast for a 1.3% slump.
Besides this, Australia’s S&P/ASX 200 managed to edge up by 0.7%, although the energy subindex went down in the fact of sliding crude prices. Santos Ltd declined by 0.5%, while Woodside Petroleum Ltd edged down by 0.2%.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
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