Stock indexes in the Asia-Pacific region showed a fall today amid concerns about a new wave of the COVID-19 pandemic. The outbreak of coronavirus infection in China negatively affected the mood of market participants who were quick to save their assets. Negative added and very uncertain statistics on the main economic indicators of the country.
The main indicator of the increase in consumption in China - the volume of retail sales in the consumer sector - showed a decrease of 2.8% on a yearly basis. In addition, the total number of investments in central state funds also fell in the first half of this year by 6.3% and reached the level of only 19.92 trillion yuan, or 2.81 trillion dollars.
However, there are positive points. So, the volume of industrial production has grown by 4.4% in terms of a year.
The overall Asia-Pacific Securities Index (MSCI) recorded a decline of 0.3%. At the same time, Australia's stocks fell in value by an average of 0.1%, while South Korean fell 0.3%. Japan's Nikkei index recorded the largest drop of 0.7%. The S&P 500 fell 1.1%.
Today was a turning point for the Asian stock market, as the rally gaining speed came to an end, while the braking was sharp and very painful. Recall that over the past few weeks, shares in the Asia-Pacific region continued to grow steadily, despite unfavorable external factors. The culprits of such an upsurge were central banks, which were in no hurry to abandon their soft stimulating policies, which were supposed to support the economy affected by the coronavirus pandemic. However, all these successes today began to come to naught: a rapid growth was followed by an equally rapid decline.
A new wave of the pandemic is seriously annoying investors who are in a hurry to moderate their risk appetites. The situation is aggravated by news of the closure of the center of Beijing and the surrounding quarantine areas as new outbreaks of infection have appeared. In addition, the number of cases is growing in the United States of America, where over the past weekend over 25,000 new cases were recorded. Thus, the two largest economies of the world again faced the threat of closure, which I do not want to worry about again, especially since, according to experts, the consequences of the new crisis will be much more serious.
The market today began to realize that the problem with COVID-19 is still far from being resolved. Reality does not allow you to relax, and the former inspiration should be postponed until better times. Most likely, this will mean a further downward correction for markets.
However, investors do not stop hoping for a positive. They look forward to the report of the head of the US Federal Reserve, which should give a more optimistic forecast than previously expected. This, in turn, can cause securities to grow at least a little.
Stock indices in Europe also recoup the situation by falling. Bears took the initiative in their hands today . Of particular uncertainty are the intentions of European countries to continue lifting quarantine measures in their territories. So, from June 15, internal border control between EU countries should be lifted. However, in the light of recent events in China and the United States, this looks extremely rash and premature.
The overall index of enterprises in the European region Stoxx Europe 600 today fell by 1.92% and stopped at 347.25 points.
The UK FTSE 100 index fell 1.85%, the German DAX index fell even more - 2.36%, which became one of the worst dynamics this morning. The French CAC index fell 2.31%. The indices of Italy and Spain are also down 1.88% and 2.48%, respectively.
