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 rebound from one-month maximum
On Friday, Asian equities rebounded from a one-month maximum because the Fed seemed to be braced for another interest rate lift in December, paring profits made earlier this week after American midterm elections provoked a global stock ascend.
Spreadbetters actually expected European equities to follow Asia's lead and start lower. Britain's FTSE went down by 0.45%. The DAX lost 0.3% in Germany, while the CAC dived by 0.15% in France.
MSCI's index of Asia-Pacific equities inched down by 1.3% and it was headed for a 1% tumble for the week. The index reached its highest value since October 8 on Thursday.
The Hang Seng index went down by 2.4% in Hong Kong, while the Shanghai Composite Index headed south by 1.2%.
Besides this, Australian equities went down by 0.1%. In South Korea, the KOSPI index slumped by 0.05%, while Japan's Nikkei decreased by 1.05%.
On Thursday, the key US bank left interest rates on hold, although staying on track to keep gradually lifting borrowing costs, indicating good economic prospects, which were marred only by a sink in the surge of business investment.
This year, the Fed has raised American interest rates up to three times. What’s more, it’s generally anticipated to do so once again in December.
As a matter of fact, the S&P 500 went down by 0.25%, while the Nasdaq decreased by 0.53% following the Fed’s remark. As for energy equities, they appeared to be the biggest drag on the S&P because American crude dived.
American equities spiked midweek reacting to American midterm elections.
Meanwhile, the evergreen buck stood tall having rallied versus its rivals overnight, backed by higher Treasury yields as well as the Fed's intention to keep tightening its monetary policy.
The evergreen buck hit 113.925 having reached a five-week maximum of 114.09 overnight.
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 $20 per barrel just in the beginning of the day. Currently - above 25$.