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 tack on
On Friday, Asian stocks managed to leap, led by a jump in Chinese shares, on expectations that China and America are making progress in trade negotiations, while global bond gains rallied following a prolonged decrease on fears about the economic outlook.
As for European stocks, they’re anticipated to go up, with spread-betters suggesting that France's CAC, Germany's DAX, and Britain's FTSE would start 0.4%-0.5% up.
MSCI's index of Asia-Pacific stocks rallied by 0.75%, while Japan's Nikkei leapt by 0.8%.
As for the Shanghai Composite Index, it surged by over 3.1%.
The mood in the financial markets, it was brighter because American statesmen told that China has come up with proposals in trade negotiations with America on an array of issues, which go further than previously, including on forced technology transfer.
Profits on Wall Street also backed investor optimism. On Thursday, the S&P 500 managed to head north by 0.36%, while the Nasdaq Composite acquired 0.34%.
Notwithstanding recent turbulence, this quarter, the S&P 500 has tacked on by 12.3% percent that would mark its best quarterly outcome since 2009 if persisted.
The 10-year American bond gain soared to 2.402% from a 15-month minimum of 2.352% recorded on Thursday following a nearly relentless dive since the Fed’s dovish tone the previous week generated fears about the American economic outlook.
Thursday’s data uncovered that in the fourth quarter American economic surge turned out to be slower than initially anticipated, with GDP surge updated downwards to an annualized 2.2% from an earlier outcome of 2.6%.
Meanwhile, the common currency was intact, sticking with $1.1232 having tumbled to a three-week minimum of $1.1214 because rumors spread that the ECB is going to introduce a tiered deposit rate.
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!
RBA Rate Statement is released on Tuesday at 07:30 MT time.
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