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 keep to nine-month maximum on China hopes
On Tuesday, Asian shares went up, keeping to a nine-month peak because expectations for stabilization in the Chinese economy helped traders to neglect Wall Street's underperformance, which followed downbeat bank gains.
As a matter of fact, European stocks are set to gain, with futures of London as well as Frankfurt stocks jumping 0.2%-0.3%.
As for MSCI's index of Asia-Pacific stocks, it went up by 0.3%, led by profits in India and China.
The index had gone up to its highest value since July 2018 yesterday after firm export as well as banking data from China the previous week soothed traders’ worries about the health of the world's number two economy.
As for Mainland Chinese stocks, they ascended by 1.7%, partly on brisk home prices data. Meanwhile, India's NSE index managed to gain 0.8% demonstrating a record maximum, thus beating its previous maximum recorded earlier this month. Additionally, Japan's Nikkei soared by 0.2%.
As some economists pointed out, recent Chinese data is backing confidence in China’s economy, while gains haven’t been bad.
Indian stocks are soaring on expectations on India’s elections.
Moreover, hopes that China-US trade negotiators would come to compromise soon backed markets too.
On Monday, Wall Street lost ground, suppressed by the fact that underwhelming bank earnings tamed investor enthusiasm. However, while all three key American stock indexes dived, the S&P 500 kept to its record maximum.
Aside from that, safe havens, including bonds that were on the defensive reacting to the recent improvement in investor risk appetite, gained some reprieve.
Moreover, the 10-year American Treasury gain accounted for 2.548%, rebounding from a four-week peak of 2.574% hit on Monday.
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!
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