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 stocks approach eight-month maximums
On Thursday, Asian stocks kept to an eight-month maximum as traders waited for developments on China-US trade negotiations, with both sides getting closer to making an agreement and also improved risk appetite putting pressure on safe-haven assets, including the Japanese yen.
MSCI's index of Asia-Pacific stocks took a breather after five winning days, which took it to its highest value since August. As for Chinese stocks, they started firm with the blue-chip index heading north by 0.9%. Meanwhile, in Hong Kong, the Hang Seng index turned out to be a bit softer.
In Japan, Nikkei rallied by 0.2% keeping to a one-month maximum.
On Thursday, risk sentiment will be most likely mixed due to the fact market participants digest developments on the trade front against the backdrop of gloomy American economic numbers.
Wednesday’s American data revealed that the services sector activity reached a more than the 19-month minimum in March, while private payrolls ascended less than anticipated, backing the Fed’s move to suspend interest rate lifts in 2019.
Traders are worried about a steep deceleration in economic surge in the first quarter.
The focus is going to remain on the everlasting US-China trade talks as well as the US labour data on Friday.
This week, risk sentiment was backed by media reports, which tout progress in China-US trade negotiations. On Thursday, Bloomberg informed that America wanted to set a 2025 objective for China to meet trade promises.
The plan expects China to purchase more American commodities, in particular, energy products and soybeans, and allow full foreign ownership for American companies operating in China as a binding promise.
Additionally, the Dow went up by 0.15%, while the S&P 500 surged by 0.21% and the Nasdaq tacked on by 0.6%.
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!
The British pound has increased in value over the course of the past week in line with an ongoing improvement in investor sentiment.
Economic activity in service sector in the Euro zone and the UK is on its lowest rates since 2009.
Jerome Powell made a rare appearance in the public media this Thursday. What did he bring to the audience?