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 go down
On Tuesday, Asian equities declined, extending steep losses on Wall Street because technology companies bore the brunt of fears about decreasing demand, while the evergreen buck dipped after poor American data further affected confidence in the US dollar.
MSCI's index of Asia-Pacific equities went down by 0.9%.
The Shanghai Composite Index rebounded by 1%. Additionally, Australian equities dived by 0.9%, while tech-heavy South Korean equities went down by 0.8%.
Samsung Electronics declined by 1.8% and SK Hynix Inc lost 2.8% in South Korea. Japan's Tokyo Electron headed south by 1.4%. Advantest dipped by 1.2%, while Sony Corp shrank by 2.6%.
Japan's Nikkei went down by about 0.9%. The equities of Nissan Motor Co declined by 4.3%.
American equities were under great pressure on Monday. Nasdaq lost 3% because traders dumped Apple as well as various tech equities. Conflicting signals between Chin and America on their trade conflict contributed to caution.
The sink by American equities will cut short any attempt by stock markets to mount a sustained rebound. The matter is that investor sentiment has been impacted by the everlasting weakness in American technology equities.
Fears of a peak in corporate earnings surge in the face of soaring borrowing costs, decelerating global economic momentum as well as international trade clashes provoked a shakeout in equities for the last two months.
Meanwhile, the evergreen buck struggled at a near two-week minimum versus a group of its key counterparts.
The US currency was affected by data uncovered on Monday, which disclosed that American home builder sentiment demonstrated its steepest one-month sink for more than 4-1/2 years in November.
In addition to this, the greenback had also been affected after Fed Vice Chair Richard Clarida along with Dallas Fed President Robert Kaplan raised worries over a potential global deceleration.
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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