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 shares are mixed on lingering trade worries
On Wednesday, Asian equities turned out to be mixed in morning trade because worries over a looming trade conflict between China and the United States kept lingering.
The Dow headed south by 287.26 points, erasing all of it revenue for the year. As for the S&P 500, it went down by 0.4%, the Nasdaq decreased by 0.3%.
Goldman Sachs CEO Lloyd Blankfein’s statement appeared to be shocking because the statesman told that he’s not concerned over the recent global trade clashes between the two leading economies.
In China, the Shanghai Composite index as well as the Shanghai Component started 0.07% and 0.02% lower. As a matter of fact, the Hang Seng Index managed to grow by 0.2% in Hong Kong.
Governor of the People’s Bank of China, Yi Gang told in an interview with the Shanghai Securities News that policymakers are ready for outside shocks. Moreover, he asked investors to be calm. China’s major financial institution is ready to take adequate measures to respond to the standoff and stabilize the country’s stock markets.
The Chinese statesman told that China’s authorities are going to be forward-looking in the situation. The Chinese government will come up with relevant policies and certainly utilize all kinds of monetary policy solutions. He added that stock market turbulence is mostly powered by market sentiment. In addition, he pointed out that his country has enough room to adequately respond to any trade hostile move.
Besides this, this week China’s leader Jinping and North Korea’s leader Kim Jong Un had a meeting in Beijing. The both leaders came to a deep understanding on a variety of issues, including denuclearization of the Korean peninsula, as North Korea’s state media informed.
Kim’s two-day visit to China’s capital that followed his Singapore summit the previous week, is expected to finish a bit later today.
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 $20 per barrel just in the beginning of the day. Currently - above 25$.