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 tumble
On Monday, Asian equities slid because worries of faster rate lifts in America along with uncertainty around the China-US trade conflict affected investment in risky assets. Meanwhile, the UK currency managed to ascend to a two-week maximum on hopes of an orderly Brexit.
Financial markets are anticipated to be uncertain ahead of American congressional midterm elections on Tuesday.
According to recent surveys, there’s a high probability that the Democratic Party could gain control of the House of Representatives following two years of having no practical political power in the USA, with Republicans expected to hold the Senate.
Additionally, MSCI's index of Asia-Pacific equities went down by 1.5%, getting back to the previous week’s 1-1/2 year dip of 505.61 points.
The Nikkei N225 index dived by 1.3% in Japan, while the KOSPI index lost 1.4% in South Korea.
Chinese equities started in the red with blue-chip shares CSI300 losing 1.4% even as President Xi Jinping pledged to cut import levies and keep broadening market access.
Besides this, American stock futures headed south by 0.3% because Wall Street concluded down on Friday following upbeat jobs surge for October as well as fears that a trade pact between China and the United States might not be struck soon.
America posted firm jobs surge for October, with annual wage profits at 9-1/2-year maximums. It definitely backed hopes for a December rate lift.
The British pound rallied to a two-week peak on soaring expectations for a smooth Brexit, while Asian equities started the trading week gingerly in the face of concerns over tough China-US trade relations.
The evergreen buck struggled to hold profits earned on Friday after the positive jobs data. Versus the safe haven Japanese yen, the greenback hit 113.17. As for the common currency, it stood still sticking with $1.1387.
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.