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 struggle, as China-US trade conflict resumes
On Tuesday, Asian equities struggled because another round of US-China levies and a leap in crude prices to four-year maximums drove fears about risks to global surge.
Spreadbetters actually expected EU equities to start on the defensive, with the UK’s FTSE soaring by up to 0.1%, Germany's DAX standing still as well as France's CAC going down by 0.2%.
Additionally, MSCI's index of Asia-Pacific equities slumped by 0.15%. However, Japan's Nikkei N225 managed to ascend by almost 0.2%.
Besides this, the Shanghai Composite Index SSEC inched down by 0.7%. Australian equities slumped by 0.1%. As for Hong Kong markets, they were unavailable due to a holiday.
On Monday, America and China dared to slap fresh levies on each other's goods and neither side doesn’t seem to be ready for a compromise, lifting the risk of a protracted conflict, which could potentially chill investment and also impact global trade.
The Dow headed south by 0.7%, while the S&P 500 lost 0.35% overnight.
On Tuesday, the key US bank is scheduled to start its two-day policy gathering.
American stocks had made firm profits the previous week because market participants had hoped that China and America would find a way out of the trade issue.
The common currency was intact hitting $1.1742.
The common currency had ascended to a 3-1/2-month maximum of $1.1815 on Monday after ECB Governor Mario Draghi told that he observes a powerful pickup in euro zone inflation, underpinning moves toward unwinding an ECB asset-purchase program expected to stimulate the EU economy.
Ahead of the Fed's highly anticipated rate lift, the evergreen buck rallied to a two-month maximum of 113.00 yen before slumping to 112.915.
Versus a pack of its key rivals the USD index jumped by up to 0.15% being worth 94.329.
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!
RBA Rate Statement is released on Tuesday at 07:30 MT time.
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.