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 rally
On Friday, European equities went up, breaching a five-month maximum recorded yesterday because market participants cheered upbeat signals over US-China trade negotiations and after British lawmakers underpinned a delay of a chaotic departure from the EU.
The STOXX 600 managed to surged by about 0.1%, breaking the October 5 maximum recorded on Thursday and finding itself on track for its greatest weekly leap for a month.
All the key bourses stood in positive territory. However, London's FTSE 100 managed to outperformed its peers, backed by its heavyweight mining and oil shares on higher metals as well as crude prices. As for trade-sensitive DAX, it surged by 0.1%.
The sentiment was also underpinned by strengthening hopes that the United Kingdom won’t depart from the European Union without an agreement on March 29 after Thursday night's parliamentary vote.
Technology shares turned out to be the top-notch performers, adding 0.6% after better-than-anticipated outcomes from American chipmaker Broadcom overnight and backed by hopes that China and America are going to resolve their trade clash, which has affected financial markets.
Chinese Vice Premier Liu He had a telephone conversation with US Treasury Secretary Steven Mnuchin as well as US Trade Representative Robert Lighthizer. The both sides made further substantive progress on trade negotiations, as Xinhua informed on Friday.
The prospect of the trade negotiations taking longer than anticipated tamed some of the profits, and there was still no clarity on how close the two leading countries are to coming to a compromise.
UBS headed south by 1.3% after Switzerland's major financial institution told it’s increasing its litigation provisions to deal with a French court that imposed a hefty penalty in February.
Meanwhile, Swedbank tumbled by 1.9% because the Danske Bank moneylaundering scandal escalates.
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!
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