empty
 
 
04.08.2020 04:42 PM
Asia and US stocks rise while European stocks fluctuate

This image is no longer relevant

A predominant rise was recorded on the Asia-Pacific stock exchanges on Tuesday. The main indicators were encouraged by the rapid growth of their American counterparts, which made them also move to positive dynamics almost everywhere (with rare exceptions). It should be borne in mind that the growth of American indices was provided by statistics on the level of economic development in the country, which turned out to be much better than the preliminary forecasts of analysts. Moreover, the increase in the number of COVID-19 patients, which continues to grow rapidly, seems to have faded into the background for investors as they have ceased to react so sharply to it.

Market participants expressed hope that in the near future the US will be able to control the spread of the virus, which will slightly improve the economic situation and make the recession not as deep as previously thought. Hope alone is still enough for the stock markets to feel relief and start to mark growth.

However, along with this, alarming notes remain about the continuation of the pandemic, which may ultimately weaken the economy, which will be reflected in the next portion of statistics.

Japan's Nikkei 225 rose 1.71% Tuesday morning. The growth took place after the news of a possible consensus in the negotiation process on stimulus measures in the US. In addition, European statistics in the manufacturing sector also affected the indicator as a balm for the soul. Also, the news of the beginning of the third phase of clinical trials for a potential COVID-19 vaccine, which is being developed by the American pharmaceutical corporation Eli Lilly & Co., gave hope for an early end to the global pandemic.

China's Shanghai Composite Index rose 0.35%. The Hong Kong Hang Seng Index supported this trend and rose even more rapidly by 2.05% at once.

South Korea's Kospi also rose significantly by 1.13% after receiving special support from statistics on the level of consumer prices in the country for the second month of summer. As it became known, prices increased by 0.3% on an annualized basis, while a month earlier they remained without any dynamics at all. It should be noted that this is the highest inflation rate that has been recorded since the beginning of the coronavirus pandemic. Nevertheless, preliminary forecasts of analysts were more gloomy: they claimed that the growth would be at least 0.35%. This did not happen, which was good news for the markets.

The Australian S & P / ASX 200 did not lag behind its peers and showed a significant increase of 2%. This growth was supported by the results of the meeting of the country's main regulator - the Reserve Bank, during which the quite expected decision was made to keep the interest rate at a record low level of 0.25%. However, representatives of the bank noted that active economic recovery is taking place throughout the region, which may become the basis for revising the key rate in the future.

Positive statistics were also recorded in the economy. Thus, the level of Australian retail sales increased by 2.7% in the first month of the summer compared with the previous data. Analysts expected growth, but less, by about 2.4%. Recall that in May this figure has already increased significantly rising by 16.9%.

Australia's trade surplus was also marked by growth. It was able to reach 8.20 billion Australian dollars, while the previous level was only 7.34 billion Australian dollars. However, experts predicted an increase to 8.8 billion Australian dollars.

In a similar scenario, the US stocks were also marked by rapid growth in all directions. At the same time, in some cases, it was even possible to beat previously recorded records. Thus, the Nasdaq Composite stock indicator again stepped over its previous record and reached a new maximum value.

The Dow Jones Industrial Average was able to rise 0.89% or 236.08 points, which moved it to the area of 26,664.4 points.

The Standard & Poor's 500 index gained 0.72% or 23.49 points. By the end of Monday's trading, it was around 3,294.61 points.

Nasdaq Composite has again topped the growth and increased by 1.47% or 157.52 points. Its current level is located at around 10,902.8 points.

The main supportive news here came from pharmaceutical company Eli Lilly & Co., which, according to representatives, has begun the third phase of clinical trials for a potential COVID-19 vaccine.

In addition, the index of business activity in the manufacturing sector of the US for the second month of this summer increased to 54.2 points, which was the highest value in recent months.

European stock exchanges, on the other hand, started the trading day without much enthusiasm: the dynamics are not too high, and there is no general vector of change. Market participants gave an ambiguous assessment of corporate statistics, which was reflected in the multidirectional movement of the main stock indicators.

Yesterday's trading session was more than successful for European stock indices: they rose significantly against the backdrop of excellent statistics, which encouraged market participants. Thus, the overall PMI index in the manufacturing sector, which includes nineteen countries in the region, managed to reach 51.8 points in mid-summer, while its previous value was below the strategically important level of 50 points (it is this mark that indicates the growth of activity). In June, the index was only 47.4 points.

However, the traditionally difficult month for the stock market lies ahead. Nevertheless, it all boils down to the fact that this year there will be fewer cataclysms, since the main trends did not show significant shifts, and securities did not collapse and did not grow rapidly, which would indicate an imbalance in the market.

The general index of large enterprises in the European region Stoxx Europe 600 began to creep down. So far, it has only declined by 0.06%, which moved it to the level of 363.42 points.

The UK FTSE 100 index also showed a negative movement, which also turned out to be within 0.06%. The German DAX index went down 0.11%. By contrast, the French index rose 0.63%. Spain's IBEX 35 index reflected a similar rise of 0.63%. And the leader of the rise was the Italian FTSE MIB index, which gained 0.84%.

Maria Shablon,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback