The main stock indicators in the US stock exchanges plunged on Thursday. The reason for the negative trend is still due to the price cuts in the shares of the companies in the technology sector which seriously puts pressure on the indices.
The Dow Jones Industrial Average fell immediately by 1.45% or 405.89 points. This forced it to move to the level of 27,534.58 points.
The S&P 500 index lost more with 1.76% or 59.77 points, which moved it to the level of 3,339.19 points.
The Nasdaq Composite Index became the leader of the fall after losing 1.99% or 221.97 points. Its current level was 10,919.59 points.
The US statistics also added some negativity. As it became known, the number of new applications for unemployment benefits amounted to 884,000 last week, which ended September 4. Most analysts have initially argued that it would not exceed 846,000, and in some cases even indicated a decrease to 840,000.
As a result, it can be noted that over the past two weeks, the number of new applications for benefits does not exceed 1 million units, which, of course, is already a good sign. However, investors are concerned about the fact that their decline is rather slow.
In addition, data on changes in producer prices in the US was released on Thursday. It showed an increase of 0.3% over the last month of summer since the growth in the previous period amounted to 0.6%. Compared to the same period last year, prices decreased by 0.2%.
A certain influence on stock indicators was also exerted by the main European regulator - ECB, whose regular meeting was held on Thursday, September 10, 2020. As expected, the ECB did not change the base interest rate on loans and left it at zero. The deposit rate also remained at its negative level at 0.5%. In addition, the scope of the Pandemic Emergency Purchase Program remained unchanged at 1.350 trillion euros.
The main indicators on the Asian stock exchanges, on the other hand, moved multidirectional on Friday. The indices of Japan and China are increasing their positions, but the rest have some difficulties. The reason for the negative can be attributed to the pressure from the technology companies from the US.
Moreover, investors in the region were particularly concerned about the sharp increase in the number of coronavirus infections in China. Over the past day, their number has increased by 37 people, while the active form of the disease was recorded in 15 people. It is worth noting that all new cases of COVID-19 have been imported into the country.
China's Shanghai Composite Index rose 0.3% on Friday. The Hong Kong Hang Seng Index supported the positive trend and climbed 0.7%.
Japan's Nikkei 225 Index gained 0.7%.
South Korea's Kospi index, on the other hand, began to reduce its positions and went into negative territory by 0.35%.
Australia's S & P / ASX 200 fell 0.6%.
Meanwhile, European stock exchanges traded rather sluggish on Friday. Indicators show minor and multidirectional changes.
The general index of large enterprises in the European region Stoxx Europe 600 increased by 0.11%, which allowed it to move to the level of 367.9 points.
The UK FTSE 100 Index jumped 0.24%. The German DAX index, on the other hand, went down 0.06%. The French CAC 40 index added 0.07%. Italy's FTSE MIB Index sank 0.15%. The Spanish index supported the negative trend and sank 0.5%, making it the leader in Friday's fall.
Market participants still cannot fully evaluate all the fundamental data to determine the direction of movement.
On the one hand, they are under pressure from the situation with the negotiation process between the UK and the EU on the trade agreement and Brexit, which is still far from making any decision. There are still many disagreements between the parties. Analysts and participants in the entire process are especially concerned about the fact that the UK does not want to provide guarantees for future fair competition.
Another important event for the stock markets was the meeting of the European Central Bank. As a result, the base interest rate, as well as the rate on deposits, remained unchanged. The first is at the zero level, and the second is in the negative zone - minus 0.5%. In addition, the rate on margin loans was not revised either with 0.25%.
Among other things, the chairman of the regulator said that the eurozone's GDP, according to his expectations, should show an 8% reduction by the end of the current 2020. And already next year, GDP will begin to grow and may increase by 5% in a year. In 2022, growth will be another 3.2%. Thus, over the next two years, the region will be able to cope with the consequences of the crisis caused by the coronavirus infection pandemic that arose in the EU.
