The US stock exchanges rise on Tuesday due to an increase in the value of securities of companies in the technology sector. The day before, the major stock indexes showed a reduction in their positions, and it was quite serious against the background of a large number of negative news and new risks that arose in the markets. The Dow Jones index sank 1.84%, the S&P 500 index parted with 1.16%, and the Nasdaq index got off lightly, which only lost 0.13%. However, it became clear that the global decline gradually waned and indicators began to regain lost positions.
Fed Chair Jerome Powell issued a statement on Tuesday that the US economy is well-positioned to recover from the coronavirus pandemic crisis much sooner than previously indicated. For this, it is only necessary to comply with a number of conditions, particularly the simultaneous introduction of measures of budgetary and monetary stimulus. However, this is a rather difficult task for the government given that it remains to have unresolved disagreements on the introduction of a new incentive program.
In addition, in many ways, the prospects for the development of the US economy also depend on how quickly and smoothly the country will fight COVID-19. In the event of a sharp deterioration of the situation and an increase in infection, the state risks being in another crisis pit.
Meanwhile, the press received another forecast for changes in the country's GDP level in annual recalculation. According to updated data from the US Congressional Budget Office, the annual average growth rate will be around 1.6% from 2020 to 2050. This is slightly less than the level mentioned earlier. Previous long-term forecasts reflected an average GDP growth of 2.5% from 1990 to 2019.
Market participants were also attracted by data on home sales in the US secondary market on Tuesday. The national Association of realtors points out that the figure increased over the last month of summer by 2.4% and was within 6 million homes in recalculation for the year. This was evidence of growth for the third month in a row.
The Dow Jones Industrial Average index gained 0.52% or 140.51 points, which sent it to 27288.18 points.
The S&P 500 index was up 1.05% or 34.51 points. Its current level stopped at 3315.57 points.
The Nasdaq Composite index became the leader of the growth which immediately increased by 1.71% or 184.84 points, which moved it to the limits of 10963.64 points.
The Asian stock exchanges also went on a positive mood on Wednesday. The major stock indexes were impressed by the growth of their American counterparts, and also began to climb up. Investors in this region monitored the statistics on the level of coronavirus infection. Any increase in the indicator causes a very negative reaction from investors.
As it become known, some European countries have begun to announce a second wave of the disease, which is forcing them to introduce new restrictive quarantine measures in order to prevent the spread of infection. Of course, this cannot but alert market participants who are not ready for a repeat of the situation this spring.
In addition, the ongoing conflict between the United States of America and China also raises concerns. A number of mutual unpleasant measures of recent times are alarming investors. Moreover, analysts say that the tension will only increase and it is worth being prepared for restrictions from the PRC against companies in the American technology sector.
In addition, the ongoing conflict between the US and China is also raises cocerns. A number of mutual unpleasant measures recently alarmed investors. Moreover, analysts say that the tension will only increase and it is worth being prepared for restrictions from the PRC against companies in the US technology sector.
Japan's Nikkei 225 Index is down 0.3%.
In contrast, China's ShanghaiComposite Index gained 0.17%. The Hong Kong HangSeng Index followed suit and rose 0.16%. The statements of the country's President Xi Jinping became the center of interest amongst market participants. Xi said that who noted that China does not intend to be the first to enter into a conflict on the world stage, its forces will be directed to the peaceful overcoming of all emerging international differences.
South Korea's Kospi Index gained 0.05%.
The Australian index S & P / ASX 200 strengthened quite significantly by 2.3% Nevertheless, statistics on economic growth in the country are still not very strong. The level of retail sales in the state decreased over the last month of summer, which happened for the first time in the last four months. The decline was 4.2%, which is still less than pinitial estimates of a decline by global fall of 11%.
The European stock markets are showing growth in all directions on Wednesday. The positive came after the release of the Eurozone PMI data. In addition, market participants were enthusiastic about the speech of the head of the US Federal Reserve System, which concerned the economy's recovery from the crisis.
The general index of large enterprises in the European region StoxxEurope 600 climbed 1.09%, which moved it to the level of 361.43 points.
Germany's DAX jumped 1.46%. France's CAC 40 Index added 1.55%. The UK FTSE 100 index turned out to be the growth leader, which gained 1.67% at once. Italy's FTSE MIB Index rose 1.3%. Spain's IBEX 35 Index gained 1.27%.
