empty
 
 
02.09.2020 03:27 PM
US stock exchanges rose significantly tapping Asian and EU stocks

This image is no longer relevant

US stock markets continue to rise on Wednesday. The previous trading day session ended with a fairly significant increase in the main stock indicators. The S&P 500 and Nasdaq are once again rising above their previously recorded highs.

On Tuesday, the ISM manufacturing report on business PMI in the US was released, which somehow created a positive impact on the activity of the stock market. According to the data, the US manufacturing sector was able to rise in August by 56%, a month earlier, it rose 54.2%. Note that the last time such a rise was recorded was almost two years ago. Experts' initial report estimated that the rise would not exceed to 54.5%. Of course, such a sharp jump could not fail to please market participants who have tangible hope for a faster recovery of the country's economy after the crisis brought by the pandemic.

Another factor of excellent support was the rise in the US' own stock indicators during the last month of summer. The Dow Jones swiftly moved up by 7.6%, which was its best result over the past thirty-six years. The S&P 500 Index added 7% to its previous level in August, reflecting its highest growth in the last thirty-four years. However, the biggest success was achieved by the Nasdaq indicator, which jumped immediately by 9.6%, and this is its best rise in the last twenty years.

Moreover, the positive dynamics on the US stock exchanges have been observed for the past five months in a row, which also did not go unnoticed by market participants, who were even more inspired by such work.

The next important event for investors, which should happen very soon, will be the publication of data on the unemployment rate in the country over the past month. The US Department of Labor is to report on the number of jobs and new claims for unemployment benefits. However, don't forget about the new inflation targeting policy of the Federal Reserve. Perhaps now market participants will perceive all information on the labor market differently, since the state is going to direct the bulk of its efforts on it.

The Dow Jones Industrial Average index added 0.76% on Tuesday, which allowed it to reach 28,645.66 points.

The Standard & Poor's 500 Index gained about the same with 0.75%. Its current level has stopped at around 3,526.65 points.

The Nasdaq Composite index became the leader of Tuesday's growth which immediately went up by 1.39%, pushing it to the level of 11,939.67 points.

Meanwhile, Asian stocks recorded a rather weak dynamics in the main stock indicators on Wednesday. The market was less volatile.

Nevertheless, a positive reaction from market participants was reflected in the rise on the US stock markets. Asian investors were very encouraged by the fact that the Standard & Poor's 500 and Nasdaq Composite were able to renew their record highs. This gave them hope that something similar could happen in their region. However, the recovery of the US economy itself is still in question, since the threat of the coronavirus pandemic still exists.

Japan's Nikkei 225 Index rose 0.45%.

China's Shanghai Composite index, on the other hand, dropped slightly by 0.03%. The Hong Kong Hang Seng Index followed suit and went down 0.08%.

South Korea's Kospi Index rose 0.56%, however, the statistics on the inflation rate in the state were not very impressive. There was a rise in the inflation rate in the country over the last five months. Moreover, the consumer price index also rose 0.7% from the same period last year and 0.3% from a month earlier. These data did not coincide with the initial forecast estimating a 0.6% growth. Prices in the last month of summer increased by 0.6%, while earlier they remained at the same level. At the same time, analysts were preparing for an increase of no more than 0.5%.

The Australian S & P / ASX 200 has become the leader of the growth which was able to immediately add 1.78%. At the same time, the news that the country's economy faced a recession for the first time in thirty years did not affect the indicator in any way. The main support here comes from the possibility of introducing additional incentive measures that will be able to affect the economic development in the country. The Australian economy in the second quarter of this year showed a 7% contraction. Moreover, the fall continues for the second quarter in a row. As a reminder, in the first quarter it was not so significant and amounted to 0.3%. Remarkably, the decline recorded between April and June was the largest ever recorded for this indicator.

European stock exchanges, on the other hand, traded in a positive zone which was formed against the background of the growth of stock indicators in America. However, it closed Tuesday's trading with a drop in its indicators. The negative was due to the not so impressive statistics on the growth of the EU economy.

Statistical data on changes in the level of consumer prices in European countries were released on Tuesday, which came as a complete surprise to analysts. As it turned out, consumer prices over the last month of the summer fell by 0.2% on an annualized basis. This is the first time this has happened in more than four years.

The general index of large enterprises in the Stoxx Europe 600 rose significantly on Wednesday morning by 1.68%, moving it to the level of 371.35 points.

The UK FTSE 100 Index jumped 1.59%. The German DAX index rose even more by 1.85%. France's CAC 40 Index went up 1.78%. Spain's IBEX 35 Index gained 0.51%. Italy's FTSE MIB Index climbed 1.19%.

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