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 shares bounce back
On Tuesday, European stocks stepped higher because financial experts told that worries were abating over whether the Trump administration will be capable of pushing through pro-growth reforms in the world’s number one economy or not.
The Stoxx Europe 600 index SXXP edged up 0.3%, being worth 376.05, soaring after Monday’s sag of 0.4%.
On Monday, the pan-European benchmark edged down along with equities worldwide after a Republican overhaul of the American health care system fizzled, bolstering concerns over Trump’s other business-friendly plans.
Financial markets are calm today as Hussein Sayed, FXTM’s chief market strategist revealed in a note. US tax reform, infrastructure spending as well as deregulation turns to be less likely now, though traders are still giving Donald Trump the benefit of the doubt.
However, if they see these plans will face the same fate as the health care act, financial markets will soon get down to aggressive selling.
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.