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?
European indices edge up on statistical data
On Thursday, stock indices of Western European countries concluded in positive territory on expectations of positive corporate reporting as well as signals on mitigation of some factors of geopolitical tension.
The index of the leading enterprises of the region Stoxx Europe 600 added by 0.28%, getting to 381.85, which is the highest level for seven weeks.
The British indicator FTSE 100 jumped by 1.26%, the French CAC 40 added 0.5%, the German DAX managed to acquire 0.04%. The Spanish IBEX 35 along with the Italian FTSE MIB increased by 0.54% and 0.47% respectively.
The rise of the British index took place mostly because of the depreciation of the British pound on inflation data.
As it became known on Wednesday, consumer prices in the United Kingdom in March rose by 0.1% compared to the previous month and also by 2.5% compared to last March. The price increase became minimal almost in a year.
The British pound turned to be cheaper to the US dollar by about 0.45% hitting $1.4225 per pound.
Financial markets also reacted positively to signals about some improvement in US-DPRK relations. On Wednesday, the US President Donald Trump confirmed that CIA head Mike Pompeo, who was even nominated for the post of the US Secretary of State, came to Pyongyang to meet with the leader of the DPRK, Kim Jong-no.
The prices of shares in mining and metallurgical companies rose sharply, following the cost of non-ferrous metals. As a matter of fact, BHP added 5.5% in London, Rio Tinto surged 5.4%, Antofagasta jumped 2.8%, while Glencore added 7.7%.
The price of securities of the number one European manufacturer of semiconductor equipment ASML Holding NV headed south by about 2.1%, although the company's revenue for the first quarter managed to surpass estimates.
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 $20 per barrel just in the beginning of the day. Currently - above 25$.