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 tacks on as trade-war fears relieve
On Monday, British equities headed north because stock markets worldwide managed to stabilize after the previous week’s dive that was powered by worries as for a potential global trade conflict.
The FTSE 100 index UKX inched up 0.4% being worth 6,946.90, heading north after concluding the previous week at its lowest value since December 2016. The London benchmark faced a weekly dive of 3.4%, which is its biggest descend since February 9. This year it has lost 9.6%.
On Friday, the currency pair GBP/ demonstrated an outcome of $1.4188, soaring from $1.4133 l in New York.
Worries over a probable trade conflict have put pressure on markets around the globe in March, underpinned by news that Donald Trump is pushing for duties on China’s products totaling about $60 billion.
Nevertheless, according to recent reports that Beijing and Washington are negotiating behind the scenes to avert a trade conflict.
Meanwhile, American stock futures ESM8 managed to surge, dropping a hint at g a better start in New York, right after American Treasury Secretary Mnuchin told that he hopes that China and America will finally come to an agreement to dodge those duties.
Additionally, London-listed equities in Ireland-based Smurfit Kappa Group PLC SKG inched down 3.5% right after the packaging-and-paper company had an updated bid from International Paper Co. IP dismissed, which offered shareholders up to 37.54 euros per share.
Engineering company GKN PLC’s stock GKN reported a 0.3% revenue after Amerian car parts company Dana Inc. DAN had informed on Monday that it stepped up its offer for GKN’s Driveline undertaking by approximately $140 million.
GKN has been refusing rather a controversial offer from turnaround expert Melrose Industries PLC MRO, which appears to be an element of the mid-cap FTSE 250. By the way, on Monday Melrose equities rallied 0.2%.
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.