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 head north
On Tuesday, Asian equities managed to rally due to the fact that market participants hoped that another round of US-China trade negotiations would assist in resolving a dispute that affected global surge as well as some corporate gains.
Market sentiment was improved by news that American lawmakers reached a deal on border security funding, which would prevent another partial federal government shutdown expected to burst out on Saturday. Eventually, the S&P 500 e-mini futures jumped by over 0.5%.
MSCI's index of Asia-Pacific equities tacked on by 0.3%.
Besides this, the Shanghai Composite Index rallied by 0.6%. In South Korea, KOSPI went up by 0.4%, while Australian equities ascended by 0.4%.
In Japan, Nikkei managed to head north by 2% backed by by a weaker Japanese yen.
Chinese and American statesmen expressed hopes that another round of negotiations that burst out on Monday in Beijing would help to soothe their long-lasting trade conflict.
America and China are trying to make a trade deal before a March 1 deadline. Otherwise, American duties on $200 billion worth of China’s imports will soar from 10% to 25%.
The trade clash has already started impacting global surge, affecting factory activity, businesses confidence, and also disrupting supply chains. Investors worry that the everlasting China-US tariff conflict could have a devastating impact on corporate gains worldwide.
Market experts are currently expecting American corporate gains for the current quarter to go down by 0.2% from 2018 that would be the first slump since the second quarter of 2016.
Meanwhile, the evergreen buck stood still, having strengthened for eight trading sessions in a row versus a group of six key counterparts until Monday, which is its longest ascend for two years.
American crude futures hit $52.56 per barrel, adding 0.3%. As for Brent crude futures, they ascended by 0.6% concluding the trading session at $61.87 a barrel.
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?