The stock markets of the United States of America were able to find a foothold and, following the results of past trading, closed mostly in positive territory. Investors have ceased to win back the news about the unrest in the country, as well as about the possible repetition of the scenario with coronavirus. For them, mitigating measures that support the growth of the economy affected by the COVID-19 pandemic came to the fore. In addition, statistics also add to the positive, reflecting a more rapid than previously expected exit from the crisis.
The main support for the three major stock indices was provided by the technical sector. However, the industrial and financial sectors were also on top.
Securities of the technical sector are becoming more expensive, thereby pushing the index up, despite the fact that there are quite serious external factors for the negative, which include, for example, protest demonstrations in the United States.
Recall that at the very beginning of the week, the US President DOnald Trump spoke out that unauthorized demonstrations that arose against the backdrop of the death of African American George Floyd will be severely dispersed by the authorities, up to the use of military forces. If the words of the head of state do not go wrong, investors will be forced to turn their attention to this fact, which in turn can lead to lower stock indices.
To avoid looting, shops in the United States will be closed, and a possible curfew will result in people being unable to get to outlets. This will be a repetition of the situation that developed during the global pandemic. It is difficult to say about the scale of what is happening.
The Dow Jones index was higher at the end of the trading session by 1.05% and reached the level of 25,742.65 points. The S&P 500 index increased by 0.82% and was at the level of 3,080.82 points. The Nasdaq index recorded a less positive dynamic, which rose by 0.59% and was at 9 608.375 points.
Stock indices in the Asia-Pacific region began the day by increasing, which allowed them to maintain and slightly improve the results that were recorded following the results of the last session.
Australia's ASX 200 Index gained 0.86%, despite the fact that statistics are poor. As it became known yesterday, the country's GDP showed a decline of 0.3% in the first quarter of this year.
Japan's Nikkei 225 index climbed 1.11%. The South Korean KOSPI index is up 2.25%. Hong Kong's Hang Seng index is also up 1.18%. Although the tension between Beijing and Washington has not yet passed, it has ceased to exert such significant pressure on investors.
China's Shanghai Composite index rose 0.35%, while the Shenzhen Component recorded a smaller, but still rising 0.29%. Positive here was supported by news about the resumption of the services sector and corresponding growth in it. In addition, the Caixin/Markit services purchasing managers index was at 55 points.
In general, the situation is such that market participants are betting on a systematic and targeted restoration of all processes in the economy and its return to the previous (pre-crisis) level. Hopes are based on the fact that an increasing number of enterprises are starting their activities after long stagnation.
Optimism regarding the acceleration of economic growth so far can not be offset, and besides, statistics provide it with proper support. Meanwhile, the number of patients with coronavirus in the world remains extremely high, and the vaccine from it has not yet passed all the required clinical trials, so it's impossible to say with full confidence that there will be only growth ahead. Experts also try to protect everyone from being overly optimistic, pointing out that there are a lot of problems and enthusiasm should be moderate, especially since the statistics on economic growth in the next quarter will most likely not be as impressive. According to analysts, negative values will prevail over positive statistics.
European stock indexes reflected strong, if not powerful, growth today , the reason for which was the expectation of the introduction of the next portion of incentive measures to boost the eurozone economy.
The German DAX index rose 1.7%, the French CAC 40 index jumped 1.6%, the UK FTSE index increased 1.1%.
The main factors contributing to this significant result were clear signs of economic recovery. First of all, it is worth noting the service sector, which showed the best results compared to the previous period, but so far it has not moved far from its historical low marks.
The unemployment rate in Germany has increased by 5.8%, but the previous rate was at around 6.3%, which indicates a gradual improvement in the situation.
The greatest attention of investors is still focused on the pending decision of the ECB. The regulator can extend soft economic policies and make as a stimulus the purchase of a new portion of bonds. Recall, in total, the repurchase of securities under the previously adopted plan to maintain the economy should be about 750 billion euros, or 830 billion dollars.
The material has been provided by InstaForex Company - www.instaforex.com