The US stock exchanges closed Thursday's trading in a positive zone. Most of the stock indicators were rallying, and the S&P 500 again managed to hit a record high.
The Dow Jones Industrial Average jumped 0.57% or 160.35 points, moving it to 28,492.27 points. It is noteworthy that during the trading day the indicator closely approached the important level of 28,633.85 points more than once.
The Standard & Poor's 500 Index gained 0.17% or 5.82 points. Its current level was 3,484.55 points.
The Nasdaq Composite Index was the only one to show a decline by 0.34% or 39.72 points, which sent it within 11,625.34 points. However, it should be noted that during the trading day the indicator managed to reach its maximum value of 11,730.01 points.
Market participants focused on US Fed Chairman Jerome Powell's speech at the symposium in Kansas City. Investors, on the other hand, were affected by the statistics on the level of economic development in the country, which is gradually presented to the press.
The most important statement in Powell's speech was the FRS's ratification of a new monetary policy strategy, according to which the inflation rate in the state is allowed to exceed 2% for certain periods of time. New conditions and modern challenges dictate corresponding goals for monetary policy, which adapts to them in order to be more effective.
Central to the Fed's strategy is now a different approach to inflation targeting. The US Central Bank still sets itself a strategic goal regarding the inflation rate of 2%, which is now targeted as a long-term prospect, and in the near future, it is quite possible to exceed this indicator.
The statistics on changes in the US economy leave much to be desired. In the second quarter of this year, the GDP fell immediately by 31.7% on a yearly basis. However, even this reduction turned out to be less than the preliminary forecasts of 32.9%.
But the data from the labor market inspire market participants. Thus, the number of new applications for unemployment benefits last week, which ended on August 21, decreased by 98,000. That makes a current total of 1.006 million people. Nevertheless, analysts expected that the reduction would be even more substantial and the overall level will reach 1 million applications.
Asian stock markets, on the other hand, recorded no uniform dynamics of movement on Friday morning. There was a multidirectional movement of the main indicators. The Asian market also closely monitored Powell's speech. The new strategy for monetary policy has been controversially assessed by market participants.
Japan's Nikkei 225 index showed negative dynamics Friday morning which reflected its decline by 1.1%. However, earlier the indicator sank even more by 2.6% amid news about the possible resignation of the Prime Minister of the state due to his poor health. Shinzo Abe is currently 65 years old, and this summer he has been hospitalized more than once. This, of course, may hint an imminent departure from his post, which does not please either the country's authorities, or the markets, or investors.
China's Shanghai Composite Index was able to rise by 0.6%. The Hong Kong Hang Seng Index supported the positive trend and rose by 1.1%.
South Korea's Kospi index climbed 0.4%.
Australia's S & P / ASX 200, on the other hand, fell 0.85%.
Multidirectional movements also took place in the European stock exchanges on Friday morning. This is mainly due to the restraint of investors on the speech of the US Federal Reserve Chair Jerome Powell.
The Stoxx Europe 600 Index of Large Enterprises in the European Region fell 0.27%, pushing it to 369.73.
The UK FTSE 100 Index rose slightly by 0.07%. The German DAX index, on the contrary, fell by 0.27%. France's CAC 40 Index parted with 0.09%. Italy's FTSE MIB went up 0.42%. And the Spanish IBEX 35 index has become the leader in growth with 0.54%.
The statistics on the economic development of the EU countries, which were released this Friday morning, turned out to be far from ideal. Thus, in the second quarter, there was a record reduction in GDP in France. The economy of the state collapsed immediately by 13.8% compared to the previous period. The reason for this negative is the impact of the coronavirus pandemic and the restrictive measures that were introduced against its background. However, such a significant drop was predicted by analysts; preliminary forecasts were almost completely justified.
The level of consumer prices in France also increased by 0.2% in the last month of summer compared to the same indicator recorded a year earlier, and increased by 0.1% against the level of the previous month.
The level of consumer spending in the second month of summer in France rose by 0.5% compared to June.
