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 edge up on Powell’s remark
On Wednesday, Asian stocks managed to rally due to the fact that Fed Chair Jerome Powell came up with an upbeat assessment of the American economy at his congressional testimony.
The Dow ascended by 55.53 points overnight being worth 25,119.89. Additionally, the S&P 500 went up by approximately 0.4%, the Nasdaq reached a record maximum. As for Netflix as well as tech stocks, they rebounded.
Fed Chair stressed that the US major bank is about to gradually lift interest rates, although he warned that protectionism can affect economic surge.
Meanwhile, in Asia, the Shanghai Composite tacked on by 0.5% in China. The Shenzhen Component edged up about 0.1%. The Hang Seng Index went up by 0.3% in Hong Kong.
Financial markets are currently shifting their focus to how the Chinese government would react to soften the effects of the recent trade clash with America, after Monday’s data disclosed that output in the second quarter speeded down and factory activity decelerated more than anticipated.
Additionally, Japan and the European Union came to an agreement on Tuesday. The pact suggests greater movement of services and products between the two mighty economies. It’s because they are both concerned with working out effective countermeasures against the American protectionism. It’s believed that the Economic Partnership Agreement would help Japan’s car makers and EU farmers to sell their goods. The Nikkei 225 tacked on by 0.6% reacting to the news.
In South Korea, the KOSPI index managed to rally about 0.3%. As a matter of fact, the Bank of Korea had the country’s economic surge forecast for this year cut in its bi-annual economic policy report, citing a dismal labor market revival as well as global trade tension as the reason for this cut.
Aside from shipments of semiconductors, exports surge ceased and investment shrank between these two countries. That’s why both countries put a lot of value on this agreement.
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!
The British pound has increased in value over the course of the past week in line with an ongoing improvement in investor sentiment.
Economic activity in service sector in the Euro zone and the UK is on its lowest rates since 2009.
Jerome Powell made a rare appearance in the public media this Thursday. What did he bring to the audience?