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 dive amid caution on global surge
On Friday, Asian stocks decreased because trepidation ahead of the start of the American corporate earnings season as well as underlying anxiety over the global surge outlook managed to eclipse some reassuring American economic data.
EU stocks are anticipated to start fractionally up, with pan-region Euro Stoxx 50 futures adding by 0.03% hitting 3,366 in early European trades. Besides this, German DAX futures slumped by 0.02% showing 11,971.5, while FTSE futures tacked on by 0.2% being worth 7,377.
In addition to this, MSCI's index of Asia-Pacific stocks slumped by 0.1%, having previously see-sawed within a tight band.
Notwithstanding broad weakness in the region, with Chinese blue-chips decreasing by 0.4% ahead of the publication of March trade data, higher Chinese iron ore prices assisted Australia's S&P/ASX 200 index to head north by 0.85%.
Besides this, Japan's Nikkei stock index managed to soar by about 0.7%.
As a matter of fact, the Dow Jones Industrial Average headed south by 0.05% hitting 26,143.05, while the S&P 500 was intact reaching 2,888.32. As for the Nasdaq Composite, it tumbled by 0.21% trading at 7,947.36.
Tempering expectations for a steep deceleration in American surge was data that revealed that the number of US citizens who filed applications for unemployment benefits decreased to a 49-1/2-year minimum the previous week.
Remarks from Fed Vice Chairman Richard Clarida that the American economy is currently in a good shape, but re-emphasising the major US bank’s patience on rate lifts, also helped to reassure traders.
Underscoring threats to the world economy, Mitsuhiro Furusawa, IMF Deputy Managing Director told that a greater-than-anticipated deceleration in the Chinese economy is still a major risk.
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.
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