The US authorities filed a lawsuit against Facebook - what are the implications?
Asian equities go down on slumping China’s exports
On Monday, Asian equities tumbled following a substantial contraction in China’s exports that hinted at deepening cracks in the world's number two economy and increased worries of a steeper deceleration in global surge as well as and corporate profits.
As a matter of fact, E-minis for the S&P 500 went down by 0.8%, thus indicating increased risk aversion. As for spreadbetters, they demonstrated a poor start for the European bloc, while FTSE futures went down by 0.4%.
China’s fresh data disclosed that in December imports went down by 7.6% year-on-year, while experts had hoped for a 5% ascend. Besides this, exports suddenly went down by 4.4%, confounding hopes for a 3% leap.
The dismal numbers backed worries that American duties on Chinese experts were starting to heavily impact the Chinese decelerating economy.
Decelerating demand in China is already being perceived around the globe, with decelerating sales of goods varying from cars to iPhones.
A major indicator of global risk sentiment as well as a liquid proxy for China’s Yuan, the Australian dollar rebounded from a one-month maximum of $0.7235 recorded on Friday to $0.7186 following the dismal data.
Besides this, MSCI's index of Asia-Pacific equities went down by 1% from Friday's 1-1/2 month maximum, thus demonstrating its most impressive single-day slump since January 2.
As for Chinese equities, they found themselves in the red. The blue-chip index CSI300 headed south by 0.7%. The Hang Seng index dived by 1.5% in Hong Kong, while Australian equities AXJO rebounded from early gains, concluding the trading session generally intact.
Some financial analysts expect Monday's trade report to provide impetus to the Chinese cabinet to tackle the trade dispute with America.
The world's two leading economies have been negotiating for months with the aim of resolving their bitter trade conflict, without any signs of any significant progress in talks.
Russian media companies are complaining that Youtube and Facebook block them. So sad. Now, what about the stock price?
Have you seen the Tesla stock price? But it has already dropped from that high... will it move up again?
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!