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 go down
On Thursday, Asian stocks dived because a shocking deterioration in German as well as South Korean economic data boosted worries of the decelerating global surge, while crude prices rebounded a bit following a steep run-up earlier in the week.
Eventually, the Japanese yen decreased to 112 a dollar right after the Bank of Japan left its policy on hold on Thursday, although promised to keep interest rates low enough until early 2020.
Earlier, the BOJ told it would keep current very low levels of rates for an extended period.
The common currency stabilized having dived to a 22-month minimum of $1.114 to the evergreen buck overnight, powered by a sink in German business confidence that highlighted the divergence between data in America and the euro zone.
Data disclosing the South Korean economy suddenly shrank in the first quarter of 2019 also powered fears about the dual-speed nature of the world economy.
MSCI's index of Asia-Pacific stocks went down by 0.27%, while Japan's Nikkei average managed to tack on by 0.4% demonstrating 22,280.99 points.
Besides this, overnight, Wall Street neglected some earnings misses, although headed south at the end of the trading session due to the fact the S&P 500 along with the Nasdaq Composite reported record closing peaks on Tuesday.
Some experts told that expectations that China’s economy is bottoming out have underpinned recent leaps in global stocks.
The USD index, gauging the greenback’s purchasing power versus its main rivals, went up by 98.189, which is its highest outcome since May 2017.
The common currency reached $1.1157, having faced its biggest one-day tumble versus the evergreen buck since early March.
Additionally, Brent crude futures dived by 0.1% ending up with $74.51 a barrel.
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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