Asia-Pacific's stock market failed this morning. Major stock indices turned sharply and declined. At the same time, a similar situation is noted on the US trading floors, which is due to a sharp and unexpected decline in the value of securities of US technology companies.
On another note, news regarding the unresolved Brexit situation also negatively affected market participant's mood. This is worsened by the financial stimulus package in the United States, which remains undecided.
Asia-Pacific stock exchange
Today, Japan's Nikkei 225 Index fell by 0.23%. China's Shanghai Composite Index also declined by 0.13 in the morning, followed by South Korea's KOSPI Index dropping to 0.33%. The Hong Kong index supported the negative trend and fell to 0.6%. Nevertheless, the forecasts for the further recovery of the country's economy are quite good. In particular, Asian Development Bank's analysts believe that China's GDP is expected to rise by an average of 2.1% before this year ends. It should be recalled that the previous forecast was somewhat more decent: growth was expected by at least 1.8%.
However, the rest of the Asia-Pacific region will likely remain in a negative zone this year. The resident states will at least record a decline in GDP by an average of 0.4%. This data is much better than previously assumed, which was at the level of 0.7%.
Australia's S&P/ASX 200 Index declined by 0.67%. It is noteworthy that this negative trend has been going on for the indicator for eight consecutive trading sessions.
European stock exchange
Contrary to the Asian ones, European stock exchange continues to have a positive mood. The main stock indicators are rising on the news following the meeting of the main regulator of the region – the European Central Bank (ECB), although there are some exceptions.
The general index of large enterprises in the European region, STOXX Europe 600, slightly plummeted. The decline was 0.03%, and the current level of the indicator is 394.8 points.
On the other hand, the UK FTSE 100 Index rose by 0.52% as well as the German DAX Index, which increased by 0.07%. The French CAC 40 index also rose by 0.31%, followed by Spain's IBEX 35 Index growth of 0.08%. Italy's FTSE MIB also climbed by 0.29%.
Based on ECB's final minutes, whose meeting was held the day before, the deadline for the implementation of the emergency repurchase program has been extended for at least another six months, that is, until December next year. The total amount of funding has also been expanded, amounting to 1.85 trillion euros, which is 500 billion euros more than the previous value.
In addition, there was some clarification in the process of negotiations between the British Prime Minister and the President of the European Commission. In particular, it became known that the parties must assess the chances that an agreement will still be reached until Sunday. The meeting between the two leaders lasted for several hours on Wednesday and ended late Thursday night. However, lengthy negotiations practically did not bring complete success. Analysts say that there are still many disagreements and misunderstandings that will be very difficult to overcome.
