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 stocks dive
On Thursday, European equities went down because upbeat mood over US-China trade negotiations dissipated after a number of details on progress showed up and a slew of dismal earnings reports impacted retailers as well as car stocks.
As a matter of fact, the trade-sensitive DAX headed south by 0.8%, while the STOXX 600 declined by 0.7%. As for Britain's FTSE 100, it inched down by 0.5%. Eventually, the dives snapped the EU’s two-day leap that had taken it up to three-week maximums.
Additionally, German lighting company Osram turned out to be the top loser on the STOXX, slipping by 7.2% because its CEO warned it faced a weaker than anticipated final quarter of last year because car demand speeded down steeply.
The latest indication of weakness in the automotive sector had car parts manufacturers Faurecia and Valeo bruised, diving respectively 4.7% and 3.4%, while tire maker Continental decreased by 2.9%.
In addition to this, Italian car maker Fiat Chrysler went down for a number of reasons. According to some sources, it had to shell out over $700 million to tackle lawsuits from the US Justice Department over claims it utilized illegal software to enable diesel cars to emit excess emissions.
As for Autos, these equities appeared to be the top losers, declining about 1.6%.
Other top divers were represented by Scout24, slipping by 4.8%.
In the United Kingdom, updates from retailers, such as Tesco, Marks & Spencer, Halfords, and B&M dominated with many contributing to indications of a challenging Christmas because of dismal consumer confidence.
Cycling as well as auto parts retailer Halfords went down by 23.2% getting to the bottom of the FTSE 250 following a profit warning.
Tesco turned out to be a silver lining, soaring by 2.3% to the top of the FTSE 100 because its Christmas trading outperformed peers with a 2.2% leap in sales.
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.
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.