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 go up on trade hopes
On Thursday, EU stocks went up because signs of progress in US-China trade negotiations helped market participants to neglect fears over global surge as well as the UK’s chaotic attempt to depart from the European bloc.
The STOXX 600 index went up by 0.2%, while Frankfurt's trade-sensitive index headed north by 0.4%.
China has come up with unprecedented offers on such issues as forced technology transfers as it works with America to resolve their trade conflict. Moreover, Chinese Premier Li Keqiang told that his country would expand market access for foreign financial institutions as well as insurance companies.
European shares surged a bit. The UK’s exporter-heavy FTSE 100 managed to inch up by about 0.6% as the UK pound slumped after Prime Minister Theresa May didn’t manage to sway hard-line rivals of her proposed Brexit deal, suspending the entire process.
Efforts to convince UK lawmakers to back May's proposal will resume on Thursday, although it’s still uncertain how, when or even if the United Kingdom will leave the European bloc.
In addition to this, German biotech company Evotec lead profits on the STOXX, heading north by 4.5% after its outcomes surpassed estimates. Tobacco shares Imperial Brands as well as British American Tobacco shot up by 2% right after Citi upgraded each to the "buy" status.
Car makers managed to extend profits from Wednesday, although Fiat Chrysler Automobiles headed south by about 1% right after Nissan Motor Co's chief executive told that he didn’t know that its French partner Renault SA made a bid for the company.
Contributing to its woes, the Italian carmaker's German counterpart Volkswagen told that it was indifferent about a partnership with the company.
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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Today the US nonfarm payroll data will be reported that could cause fluctuations of the market.