Today, the stock markets of the Asia-Pacific region have not registered any significant changes. The markets failed to take one side or the other showing almost no dynamics.
Japan's Nikkei 225 index fell by 0.64%. At the same time, the level of consumer spending in the country significantly decreased in the last month of spring. The indicator dropped by 16.2% compared to the same period last year. Preliminary data was slightly better. Economists had expected a decline of 12.2%.
China's Shanghai Composite rose by 1.42%. However, Hong Kong's Hang Seng index declined by 0.59%. Among the leaders of a rise are car manufacturer Geely Automobile Holdings Ltd., which shares managed to increase by 5.4%, as well as insurance company China Life Insurance Co.. Its shares jumped by 4.9%. Wharf Real Estate Investment Co. showed the largest decrease of 3.7%.
South Korea's Kospi index lost 0.98% in the morning. At the same time, during the day, it managed to get close to this month's high. The success was driven by hopes for a rapid economic recovery to the level that existed before the crisis caused by the coronavirus pandemic. Leading companies in the country such as Samsung Electronics Co., Kia Motors Corp., and Hyundai Motor Co noted a reduction in the value of shares.
The Australian S&P/ASX 200 index also went down, but the fall is not significant. It inched down by 0.03%. In the previous days, it managed to advance against the background of news on monetary policy. Today, the main regulator of the state decided to leave the key rate at the same extremely low level of 0.25%. In addition, it was noted that under the current extremely difficult economic conditions in the world, a slump in the Australian economy is still not as deep as, for example, in the United States or other countries of the region.
The stock markets of the United States began to experience a wave of positive emotions this week. The rise was recorded in all major areas following the results of yesterday's trading day. The growth was triggered by positive data on business activity in the country's services sector in June. The figures exceeded the forecasts of market participants and economists. In addition, the data reflected a stable and rapid recovery of the world's second largest economy. At the same time, investors have almost stopped reacting to the increase in the number of new virus cases despite the fact that its pace is accelerating every day.
The US services PMI in June climbed to 57.1 points, while earlier, in May, it was at the level of 45.4 points. This advance is really important as it has demonstrated an increase in consumer confidence in this sector.
Market participants have also priced in the report that reflected the Chinese economic recovery. Moreover, they are showing interest to risky currencies such as the Chinese yuan which soared against the US dollar.
China's securities also moved up for the fifth consecutive trading session.
The US statistical data is also rather strong. So, there was a jump in the number of jobs, which affected the Nasdaq index. It hit its record high. The S&P500 index increased by 40% compared to the previous minimum value recorded at the end of March.
Growth in stock markets has not been stopped even by the severe epidemiological situation in the United States and the whole world. However, there is a strong possibility of the second wave of the COVID-19 pandemic. Investors will hardly ignore this fact: some negative correction should occur. The only question is how strong and prolonged it will be.
The Dow Jones index rose by 1.78% to reach the level of 26,287.03 points. The S&P 500 index jumped by 1.59% to 3,179.72. At the same time, the Nasdaq Composite index became the leader of the US market: it soared by 2.21% to 10,443.65 points.
The European stock markets are still in the negative zone. Almost all indices fell today. The main reason is weak statistical data from Germany. Thus, Germany's industrial production figures were unexpectedly disappointing.
The total output in the German industrial sector for the last month of spring was 7.8% higher compared to the previous month. At the same time, an advance in May was not as significant as analysts had expected.
Negative figures from Germany were slightly softened by data from Italy. There, economists logged a rapid increase in retail sales. The indicator jumped by 24.3%. In the previous month, retail sales dropped by 10.7%.
However, the European Commission did not take into account the Italian statistical data and lowered the forecasts for the EU's economic growth in 2020-2021. After adjustment, the economy may contract by 8.3% this year and rise by 5.8% in 2021. The previous data showed a fall of no more than 7.4% this year and an increase of 6.1% in 2021.
The overall STOXX Europe 600 index of the eurozone businesses fell by 1% to the level of 367.48 points.
The UK's FTSE 100 index declined by 1.15%. Germany's DAX index was down by 1.35%. France's CAC index lost 1.09%. Italy's FTSE MIB index dropped only by 0.37%. Spain's IBEX 35 index slid by1.23%.
