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 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.
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 $20 per barrel just in the beginning of the day. Currently - above 25$.