US stock markets remained practically without visible movements on Tuesday. The dynamics of the main stock indicators were extremely low, but this did not prevent the S&P 500 from reaching its maximum record value. In general, since mid-spring, the indicator was able to add 54%, which became possible due to an increase in the value of securities of the largest corporations in the technology sector. Thus, the S&P 500 returned to its pre-crisis level, however, without considering the fact that some sectors have not even started their recovery process, which makes us believe in the future grandiose rise of the indicator.
The Nasdaq Composite was also able to reach its next record high, which has happened for the thirty-fourth time this year.
Market participants have focused on the escalating conflict between the US and China. Another deterioration in relations happened just a couple of days ago when the US ratified the access ban for the Chinese telecommunications company Huawei Technologies Co. to the main components of her work. Companies from twenty-one countries of the world, where the export of American technology is now prohibited, were under the sanctions.
In the meantime, the problem of deciding on a financial incentive program seems to be beginning to be solved. Thus, the Republican Party is ready to present its somewhat abbreviated version of the bill, which contains the main measures to support the country's economy. Among other things, it will present increments to unemployment benefits totaling $ 300 per week, as well as a separate additional measure to support the US Postal Service in the form of a financial injection.
The problematic point is that the Democrats are not willing to compromise. They cannot agree in any way that the US President Donald Trump intends to allocate large funds that will also be used to support children, preserve jobs, a new stage of the loan program for small businesses, and direct targeted payments.
However, it is already becoming clear that the negotiation process has slightly moved off the ground.
Investors will now also be interested in corporate reporting, which is also preparing to be released soon.
The Dow Jones Industrial Average fell 0.24%, or 67.19 points, pushing it down to 27,777.72 points.
The Standard & Poor's 500 index, on the contrary, rose by 0.23% or 7.78 points. Its current level was 3,389.76 points.
The Nasdaq Composite Index rose 0.73% or 81.12 points, allowing it to take a position at 11,210.84 points.
The Asian stock markets, on the other hand, again did not demonstrate a uniform dynamics on Wednesday: the main stock indicators diverged on different sides.
Japan's Nikkei 225 Index rose by 0.26%. This was supported by statistics on the country's economic growth. Thus, the level of exports in the country for the first time in seven months began to decline at a slower pace, but the very fact of the fall has been recorded for twenty months in a row. In the second month of summer, the figure dropped by 19.2% compared to the same indicator last year. In monetary terms, the fall was 5.37 trillion yen. But Japanese imports fell more strongly by 22.3% or 5.36 trillion yen, and this is also a prolonged decline, which has been going on for fifteen months in a row.
China's Shanghai Composite Index fell 0.71%. The Hong Kong Hang Seng Index continued this negative trend and sank even more by 0.92%.
South Korea's Kospi Index, on the other hand, reacted positively to all the news and added 0.74%.
The Australian S & P / ASX 200 Index rose 0.72%.
Despite the fact that most of the indicators are still in the green zone, there are certain risks associated with the escalation of the conflict between Washington and Beijing. Recall that a new round of tension has already led to the disruption of the negotiation process on a trade agreement between the countries, as well as to the imposition of sanctions by the US against a Chinese telecommunications company.
Meanwhile, the European stocks moved up on Wednesday after Tuesday's fall. They were supported by the statements given by the US President Trump that he did not intend to conduct a dialogue with China in the near future since he considers the PRC government to be the culprit of all the troubles the world has faced this year. There is also confirmation on the absence of plans for talks in the White House. As long as the conflict remains unresolved, European stock indicators will have at least one support factor.
However, there are also moments that cause particular concern to market participants. One of them, and perhaps the most important, is the growing epidemiological situation in Europe. The number of new cases of coronavirus infection is growing, which indicates the next wave of the pandemic, the consequences of which for the economy of states can be even direr.
At the same time, there are not very encouraging data on the economic growth of the region. For example, the consumer price level in the UK increased by 1% on an annualized basis. This means that inflation also increased by 06%, which moved it to the highest values that were recorded at the beginning of this spring.
The general index of large enterprises in the European region Stoxx Europe 600 rose by 0.18% and moved to around 367.84 points.
The UK FTSE 100 Index is up 0.11%. The German DAX Index jumped 0.17%. France's CAC 40 Index increased by 0.29%. Italy's FTSE MIB Index climbed 0.26%. But the Spanish IBEX 35 index was the only one that showed albeit insignificant, but negative dynamics: its fall was 0.05%.
