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?
FTSE 100 dives after Trump-Kim meeting
On Tuesday, British equities went down because market participants moved with great caution after a long-awaited meeting between North Korean leader Kim Jong Un and US President Donald Trump.
Market participants are going to evaluate British labor-market data supposed to play a crucial role in the BoE’s discussion of the country’s monetary policy.
The FTSE 100 index managed to rebound 0.3% hitting 7,716.15. The top losers were represented by gas, crude and basic materials. However, the utility as well as consumer goods sectors turned out to be among gainers.
The London benchmark soared by up to 0.7%.
The currency pair GBP/USD reached $1.3382 versus Monday’s reading of $1.3280. Additionally, the currency pair GBP/EUR hit €1.1346 in contrast with €1.1354 in the previous trading session.
British equities headed south, while the broader European equity market SXXP managed to pare revenues due to the fact the long-awaited meeting of North Korean dictator and US President became reality in Singapore.
The two sides had a joint document signed, according to which they promised to work toward the absolute denuclearization of the Korean Peninsula. However, the given statement was heavily criticized because it lacks details on the verification of the process.
Meanwhile, the Brexit issue gets back to the fore because lawmakers of the House of Commons are going to start discussing House of Lords amendments to the bill, which takes Great Britain out of the EU.
In the United Kingdom basic wages managed to gain 2.8% for the three months to April. That’s what the Office of National Statistics informed on Tuesday. Market experts were hoping for a 2.9% soar in wages without bonuses. As for the unemployment rate, it’s still at 4.2%, which is in line with expectations.
Besides this, Halma PLC equities tacked on by 0.6%.
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.