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?
EU equities are backed by trade war optimism
On Tuesday, European equities started higher due to the fact that a new whiff of optimism over the China-U.S. trade clash backed market sentiment after a burst of political risk as well as fears about global surge affected world markets during the previous trading session.
The Euro zone STOXXE index ascended by 0.7%. Besides this, the most sensitive to China due to its big exporters, the DAX index managed to head north by 0.8% in Germany.
Previously, Asian equities got a bounce following reports that American and Chinese trade officials had a telephone conversation. That’s an indication that discussions between the world's leading economies resumed notwithstanding the recent arrest of Huawei's CFO.
Some experts pointed out that while they consider this sign to be a positively crucial in the broader context, but a trade conflict is far from over. So, it should be regarded as just a preliminary step in what should be a long and tough road.
In France, the CAC 40 index gained 0.8% because French leader Emmanuel Macron promised to lift the minimum wage and reduce taxes for the purpose of preventing more violent protests, which have rocked the euro zone's number two economy.
The FTSE 100 surged by 0.5% in Great Britain, with the UK currency stabilizing after Monday's Brexit-related tumble to a 20-month minimum after UK Prime Minister Theresa May delayed a decisive vote on how the United Kingdom will depart from the European bloc.
Among top gainers was UK advertising giant WPP. It managed to rally by up to 4.9% having announced its plans to spend about 300 million pounds and reduce 2,500 jobs, which is part of new boss Mark Read's initiative to return the world's biggest advertising group to surge.
Equities in Ashtead went up by 6.4% because the equipment rental company told it expected full-year outcomes ahead of expectations.
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!
WTI oil prices jumped up after Donald Trump’s 2 tweets
Today the US nonfarm payroll data will be reported that could cause fluctuations of the market.
WTI was at $20 per barrel just in the beginning of the day. Currently - above 25$.