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 show mixed performance
On Monday, Asian equities demonstrated mixed performance in the morning. Brexit Deal was still closely watched by market participants after on Sunday EU leaders came up with their official endorsement of British Prime Minister Theresa May’s Brexit withdrawal, and also warned UK statesmen that it appeared to be the best deal possible for the United Kingdom because there’s no an alternative plan.
Apparently, May requires gaining Parliamentary approval for the pact in Westminster in order to proceed with Brexit. Respectively, failure could result in leaving the European bloc without a deal.
Asian-traded energy equities underperformed due to the fact crude prices dived to their lowest value for more than a year the previous week.
As a matter of fact, Santos Ltd went down by 4.7%. As for PetroChina Co Ltd Class H dipped by 0.7%, while Woodside Petroleum Ltd decreased by 2.3%. Crude faced a seven-week-sell-off. On the contrary, crude futures found themselves in bear market territory in the face of soaring worries of an oversupply.
The ASX 200 went down by 0.8% in Australia.
As for key miners, they headed south in the face of fears over poor demand from China, which appears to be the number one consumer of metals.
Additionally, Rio Tinto Ltd sank by 3%, Fortescue Metals Group Ltd dived by 1.5%. As for BHP Billiton Ltd, it declined by 3%.
The Shanghai Composite and the Shenzhen Component slumped by respectively 0.4% and 0.6% in China. Financial analysts and investors put much value on the scheduled gathering of Donald Trump and his Chinese rival Xi Jinping at the G-20 summit.
Moreover, the Hang Seng Index rallied by 1.4% in Hong Kong.
Japan’s Nikkei 225 soared by 0.8%.
In addition to this, the KOSPI index managed to tack on by 1.2% in South Korea.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
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