Trading on the stock markets of the United States of America yesterday passed without much emotion and spikes. The indices did not find a general trend to move and were marked by multidirectional changes. The Dow Jones index declined, while its S&P 500 and Nasdaq counterparts, on the contrary, showed fairly good positive dynamics by the end of trading. The latter even managed to set a record - updated its maximum, which was marked almost two weeks ago.
The Dow Jones Industrial Average parted with its 77.91 points at the close of yesterday's trading, reflecting a 0.3% decline. Its level stopped at 25,734. 97 points.
The Standard & Poor's 500 index, on the contrary, rose 0.5% or 15.57 points, which sent it to the area of 3,115. 86 points.
The Nasdaq Composite index also became the leader in daily dynamics: it immediately added 0.95%, which corresponds to 95.86 points, and its level moved to the level of 10,154.63 points.
The reason for the growth of good mood among market participants was the news about a vaccine against coronavirus infection, which is being developed by one of the US pharmaceutical companies. According to the latest data, during the testing of the vaccine, the steady appearance of antibodies that neutralize the action of the virus in the human body was revealed. This indicates that the time is approaching for the release of the vaccine to the general market, which cannot but please investors, for whom such a factor as the increase in the number of COVID-19 cases will almost cease to matter.
The pharmaceutical company also said that it is ready to start mass production of the vaccine by the end of this year, which can reach 100 million doses, provided that it is approved by the main regulator.
Against the background of good news on the creation of a vaccine against coronavirus, negative news about a sharp increase in the number of infected people in certain US states also continues to arrive. Already, the authorities of 12 of them have decided to stop lifting quarantine measures, and in some cases, restrictions have even been tightened. Such actions followed after the number of infected people has increased rapidly by 40% over the past week.
Investors in the stock market were also interested in the meeting of the US Federal Open Market Committee, which took place last Wednesday. At the next meeting, such important issues as the control of the yield curve, its analysis, and opportunities for use were raised. Also, it was recommended to develop a clear and clear sequence of actions that will help support the economy after the crisis associated with the coronavirus pandemic.
The positive also came from statistics. As it became known, the index of business activity in America in the manufacturing sector for the first month of summer became much larger and reached the level of 52.6 points. Recall that a month earlier, this indicator was only 43.1 points. The real figures were much better than the preliminary forecasts made by experts. In their opinion, there should have been an increase, but not above 49.5 points. Thus, most experts left the forecast in the negative zone, since the level below 50 points indicates a rapid deterioration in the industry. An indicator above 50 points, on the contrary, becomes evidence of an increase in activity, which happened. At the same time, no one expected such a significant rise, which, of course, encouraged stock markets. At least, there was another firm signal that the economic recovery is progressing at a good pace.
Trading on the stock markets of the European region at the end of yesterday's session was mostly in the negative zone. Almost everywhere there was a decline, and only the general EU enterprise index Stoxx Europe 600 strengthened and showed a rise.
The news about the increase in the number of cases of coronavirus in the world, as well as positive moments about the final stage of creating a vaccine, was of decisive importance.
The Stoxx Europe 600 index of the largest enterprises increased by 0.24% and moved to the level of 361.19 points.
The UK's FTSE 100 index fell 0.19%. The German DAX index fell even lower – by 0.41%. France's CAC index lost 0.19%. Italy's FTSE MIB and Spain's IBEX 35 indices registered declines. The first decreased by 0.23%, and the second – by 0.06%.
In the summer of this year, the uncertainty in the markets increased even more. The main reason for this was the rapid and unexpected growth of those infected with the coronavirus, which suggests a second wave of the pandemic, although the first is far from being overcome. The epidemiological situation has seriously deteriorated in the United States and Latin America, where a record number of patients are again registered.
As for the signals of global economic recovery, market participants paid attention to the latest statistics from China. Thus, the PMI in the manufacturing sector in the first month of summer continued to consolidate above 50 points and was at the level of 51.2 points. In the previous month, its value was 50.7 points. Thus, the indicator was able to reach its maximum level over the past year and a half. According to preliminary forecasts of analysts, the index should not have risen above 50.5 points.
At the same time, the PMI in the manufacturing sector in the EU also turned out to be better than the forecast June level. The indicator stopped at 47.4 points, while previously it was expected to rise no higher than 46.9 points. Recall that in the previous period, the indicator only reached the level of 39.4 points, which was evidence of a deep crisis. New data suggest that the crisis is gradually being overcome.
