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 scale fresh seven-month maximums
On Wednesday, Asian stocks went up to fresh seven-month maximums because market participants welcomed signs of progress in US-China trade negotiations and brisk economic data, and crude approached the major $70 per barrel mark.
EU stocks followed Asia's lead. Britain’s FTSE futures rallied by 0.1%, while Germany’s DAX futures gained nearly 0.7%.
Additionally, MSCI's index of Asia-Pacific stocks ascended by 0.8% in Asia, having hit its highest value since late August.
The index has jumped over 3% since Thursday after reports of progress in trade negotiations between China and America and also reassuring factory activity data from the two leading economies.
The run of profits for stock markets around the globe has also pushed MSCI's major indicator of global stocks to a six-month maximum. Additionally, the global index headed north by over 0.2% on Wednesday.
Expectations for a deal to conclude the trade conflict between the world's two leading economies were fanned by new remarks from White House economic adviser Larry Kudlow that the US government hopes to make progress in negotiations this week.
Experts struggled to spot a clear driver for the extended jump in stocks.
Australian stocks rallied by 0.7%, while Japan's Nikkei stock index surged by 1%. Chinese blue-chips ascended by 0.5% following a tentative start. The Hang Seng index went up by 0.9% in Hong Kong.
On Tuesday, the Dow Jones Industrial Average headed south by about 0.3% hitting 26,179.13 points. As for the S&P 500, it stood still, while the Nasdaq Composite rallied by 0.25% being worth 7,848.69.
The evergreen buck gained about 0.06% versus the Japanese yen to 111.38, while the common currency rallied by 0.18% hitting $1.1222.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
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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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