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Analysis News:::2020-07-28

Stock markets still at loss: no general trends in Europe, Asia or America


The negative correction of major stock indicators in the Asia-Pacific region ended on Tuesday. Growth began, which, however, is still very restrained.

The main attention of market participants is focused on the meeting of the Federal Reserve System of the United States of America. It is expected that the regulator will decide to keep base interest rates at the same extremely low level, close to zero, for a rather long period of time.

Moreover, traders hope that the US authorities will nevertheless come to a consensus on the implementation of a new portion of stimulating financial measures for citizens of the country, which can support the recovery of the state's economy.

China's Shanghai Composite Index posted moderate gains of 0.4%. The Hong Kong Hang Seng Index supported this positive trend and added exactly the same amount.

Japan's Nikkei 225, on the other hand, slightly went down by 0.2%.

South Korea's Kospi Index took the lead in growth in the Asia-Pacific region gaining 1.4%.

Australia's S & P / ASX 200 index fell 0.2%.

Meanwhile, there is a positive mood in the US stock markets. Securities of the technological sector of the economy supported the main indicators that showed growth.

The corporate reporting season continues. So, next week, data on the work of more than 180 American companies included in the S&P 500 index will be released. Investors are in anticipation of these statistics and very much hope that it will please them.

In addition, this Thursday, the US Department of Commerce is to release preliminary statistics on changes in the country's GDP. Leading experts are confident that the country will have to face a dramatic drop in the second quarter of this year. According to some reports, the reduction could reach 33%.

Another important news for investors is the escalation of the conflict between the United States and China. The negative consequences of this tension will be felt by the global economy, the recovery process of which may significantly slow down. Tension is growing amid the closure of the US diplomatic mission in Chengdu, Sichuan province in China. This was a response to the intention of the US authorities to terminate the work of the PRC embassy in Houston, Texas.

At the closing of trading on Monday, the Dow Jones Industrial Average indicator rose by 0.43% or 114.88 points, which allowed it to move to the level of 26,584.77 points.

The Standard & Poor's 500 indicator increased by 0.74% or 23.74 points. It reached 3,239.41 points at the closing of the trading session on Monday.

The Nasdaq Composite indicator became the leader of growth after managing to jump by 1.67% or 173.09 points and move to the level of 10,536.27 points.

Europe stock markets, on the other hand, are changing in different directions. There was no general dynamics since investors differently perceived the statistics on the work of companies, as well as news COVID-19 pandemic in the region. The main line of support fell on the concerted actions of the US government, which are aimed at restoring the country's economic growth rates. The country's government is very close to making a decision on fiscal stimulus measures.

Meanwhile, Europe received a piece of not so very positive news. The ECB decided to extend the ban imposed on banks and concerning the payment of dividends and the repurchase of securities. According to new data, this restriction will last at least until the end of this year. Recall that at the beginning of spring, the main regulator of Europe for the first time made a statement on the abandonment of dividends for the period until October 2020. According to the leaders of the ECB, this was supposed to save financial institutions from excessive losses.

The general index of the largest enterprises in the European region Stoxx Europe 600 rose by 0.41%, which allowed it to move to the level of 367.66 points.

The UK FTSE 100 Index added 0.45%. The German DAX Index rose 0.43%. Spanish IBEX 35 index, rose 0.81% which took the lead in the growth on Tuesday in the European stocks. The French CAC 40 index, on the other hand, did not support the positive trend and sank 0.13%. It was followed by the Italian FTSE MIB index, which sank 0.1%.

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