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 inch up
On Monday, European stocks were on the way to their most impressive profit for eight weeks because a shocking revival in China's factory data as well as signs of progress in China-US trade negotiations spurred investor sentiment on the first trading day of the second quarter.
Eventually, the European index tacked on by about 0.9%, with all key sectors inching up.
While profits spread across all regional bourses, meanwhile, Germany's trade-sensitive DAX managed to outperform, demonstrating its 1.3% leap, underpinned by a 3% rally in car shares that were braced for their best daily leap since January 4.
Additionally, Peugeot SA headed north by 3%, while Fiat Chrysler Automobiles surged by nearly 1.6% on the news that the two companies are actually exploring a partnership with the aim of sharing investments to manufacture vehicles in the European Union.
EU chip shares turned out to be another bright spot after better-than-anticipated outcomes from Apple-supplier Foxconn Industrial.
Stocks in Infineon Technologies, Dialog Semiconductor Plc, STMicroelectronics N.V., and Ams AG and Siltronic AG tacked on by 3%-5%.
The positive mood spread from Asian markets, right after both official as well as private polls revealed that factory activity in China suddenly rallied for the first time for four months in March.
China's economic data emerges on the heels of new worries over a decelerating world economy, which resurfaced in February right after the major US bank suddenly gave up its plans for policy tightening in 2019 and also signs from the bond market of an inevitable meltdown.
The economic surge in China is going to increase from here and it’s the strongest sign driving the financial markets today,
Britain’s FTSE 100 as well as the Dublin index, often considered to be a gauge for Brexit mood, tacked on by about 0.7%.
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.