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 jump to seven-month maximums
On Tuesday, Asian stocks extended their ascend because upbeat Chinese as well as American factory activity polls backed investor confidence, while the ebbing fears over the world economy stimulated selling of safe-haven American bonds because yields rallied from 15-month dips.
MSCI's index of Asia-Pacific stocks surged by 0.2%, reaching a seven-month maximum having jumped over 1% in the previous session.
Australian stocks tacked on by 0.5%, while Japan's Nikkei surged by 0.3%, extending its yields for a third trading session.
As for the Shanghai Composite Index, it soared by 0.1%, while the Hang Seng Index stood still in Hong Kong.
On Monday, US stocks headed north, with the S&P 500 as well as Dow Jones Industrial Average both ascending over 1%, with the Dow backed by steep yields in Boeing and Caterpillar.
Market participants generally welcomed American data overnight disclosing improvements in manufacturing activity in March as well as construction spending for February that overshadowed a sudden slump in retail sales.
The positive outcomes backed positive sentiment caused by previous data disclosing China's manufacturing sector shockingly got back to surge for the first time for four months in March.
The rare bright news for the world economy emerges in the wake of ongoing fears over weakening demand around the globe, with the China-US tariff conflict, decelerating trade as well as subdued corporate yields helping traders to dump risk assets for the last several months.
The positive data on manufacturing activity in the world's two leading economies encouraged some traders to scale back holdings of safe-haven bonds, thus provoking the greatest single-day rally in American 10-year Treasury note gains since January 4.
Additionally, the American 10-year Treasury gain hit 2.479%, which is not far from a more than the one-week maximum of 2.508% recorded overnight.
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!
Moody’s downgraded the country to ‘junk’ status on Friday.
The US economy has been hit hard by the coronavirus outbreak.
The United States will publish ISM manufacturing PMI on April 1, at 17:00 MT time.