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29.09.2020 02:48 PM
US stocks rise while Asian stocks exhibited multidirectional movement

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The US stock exchanges ascent Monday due to an increase in the value of securities of financial organizations, as well as companies in the energy sector of the economy. This positive in turn was provided by the enthusiasm of market participants regarding the clearer prospects for the adoption of a new incentive program in the country.

News of the resumption of negotiations on the next incentive package in the US had a positive impact on the mood of investors and experts. The fact that the negotiations have continued is already a good sign and provides indirect support to the stock market, although there is still some doubt about the positive outcome of these negotiations since previous attempts to reach an agreement were not successful.

Delaying the decision on the stimulus program not only negatively affects the mood of investors, but also makes one think that the pace of recovery in the US economy will be slower than the authorities would like. It seems that the government has finally realized the depth of the problem, and a decision on incentives will be made in the near future.

Another important point for the stock market was the political situation in the USA. Preparations are already made for the first televised debate between the current US President Donald Trump, and his main rival, Joe Biden, this week. Political tension adds even more uncertainty, which will not be dealt with quickly.

Market participants are waiting for one of the most significant periods of volatility, which includes the election campaign and the US presidential election itself. Significant fluctuations are inevitable and will affect all asset classes without exception. In order to avoid unnecessary losses, some investors are starting to use the CBOE Volatility Index, or VIX, in their work. This can be used to protect your assets from sudden risks. At the same time, it should be noted that the situation after the elections does not stabilize immediately. It will be at least another two weeks before everything gets back on track.

The Dow Jones Industrial Average rose 1.51% or 410.10 points, by the close of trading on Monday, which allowed it to move to the level of 27,584.06 points. It has been growing for three trading sessions in a row.

The S&P 500 Index gained 1.61% or 53.14 points. Its level at the close of trading was 3,351.60 points.

The NASDAQ Composite index became the leader of the growth which jumped 1.87% or 203.96 points sending it to 11,117.53 points.

Meanwhile, multidirectional dynamics were noted in the major stock indexes in the Asian stock exchanges Monday morning.

Japan's Nikkei 225 index rose 0.12%.

China's Shanghai Composite Index gained 0.44%. The Hong Kong Hang Seng Index did not support the positive trend and declined by 0.49%.

South Korea's Kospi Index gained 1.01%. At the same time, investors do not take into account the ambiguous statistics on economic growth. The level of retail sales in the last month of summer increased by 0.3% on an annualized basis, and this turned out to be the lowest increase in the last four months. The level of industrial production in the country fell by 3%, while the previous figure was also in the red zone falling 2.4%. The business confidence index, in turn, rose to 68 points, although it was 66 points earlier. So far this indicator is the most significant in the current year.

Australia's S & P / ASX 200 index did not show any significant changes.

Maria Shablon,
Chuyên gia phân tích của InstaForex
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