Asian stock markets showed mostly positive dynamics on Thursday following the growth of stock indicators in the US markets which was mainly due to an increase in the value of securities of companies in the technology sector. The positive emotions of market participants were primarily associated with the news about the possible imminent appearance of a vaccine against coronavirus infection in the public domain. This time, investors' attention is again shifted from the unresolved issue of adopting a new financial incentive program in the US. The disputes between Democrats and Republicans continue, but they no longer cause strong emotions among market participants.
Investors are becoming convinced that the development of a cure for coronavirus is nearing completion and the vaccine will soon begin to be used. With this, it is likely that in a couple of months, we may see potential changes in the situation with the pandemic. This week, the Russian Federation has already announced the release of its own vaccine against COVID-19, but the world has many questions and assumptions about this. In addition, about 100 companies around the world have also moved on to finalizing trials of their coronavirus drugs. Thus, market participants have enough reason to believe that the epidemiological situation will soon stop putting pressure on markets and economies, and they will finally be able to move on to recovery.
Japan's Nikkei 225 index showed a fairly steady growth, which amounted to 2% at once.
China's Shanghai Composite Index rose 0.2%. The Hong Kong Hang Seng Index slightly corrected by 0.4%. Today, the main financial regulator of the PRC has made an injection of funds into the country's financial system in the total amount of 150 billion yuan, which corresponds to $ 21.6 billion. This was done through reverse REPO operations in order to preserve liquidity. Thus, the rate of seven-day transactions is now at 2.2% per annum.
South Korea's Kospi Index rose 0.4%.
Australia's S & P / ASX 200, on the other hand, went down by 0.8%. The correction was due to the change in the unemployment rate, which turned out to be higher than the previous values and amounted to 7.5% in the second month of summer, while the first one was at the level of 7.4%. There has not been such a high indicator for almost 22 years. At the same time, preliminary forecasts of experts were even sadder with an expected fall of 7.8%. Moreover, the number of jobs in Australia increased by more than 114 000 in July, although according to forecasts, the increase should not have crossed the 40 000 mark.Nevertheless, investors began to realize that the consequences of the coronavirus pandemic have quite seriously affected the country's economy.
Meanwhile, US stock markets closed in a positive zone on Wednesday. Major stock indicators were higher after the unpleasant contraction of the previous day. The change in the vector of movement turned out to be so rapid that the S&P 500 index was able to come close to its record, which was already reached in mid-February of this year.
The end of clinical trials of the potential vaccine against coronavirus infection encouraged traders as there was a solid hope to slow down the spread of the disease, and in the future to cope with it completely.
The US President Donald Trump hastened to issue a statement that the authorities are ready to purchase even an experimental batch of the vaccine, which was developed by the pharmaceutical and biotechnology company Moderna Inc. in the United States. According to preliminary data, the deal could amount to $ 1.53 billion.
Presently, overwhelming statistics on the country's economy continues to come including the consumer price index in the second month of summer which increased by 0.6% compared to the previous period. However, the inflation rate remained unchanged. On an annualized basis, consumer prices rose 1%, while preliminary forecasts indicated growth of no more than 0.8%. Market participants have not yet taken this deeper contraction trend too seriously.
The Dow Jones Industrial Average rose 1.05% or 289.93 points, moving it to 27,976.84 points.
The Standard & Poor's 500 index grew even more by 1.4% or 46.66 points, and its current level was 3 380.35 points.
The Nasdaq Composite Index became the leader of growth having able to immediately increase by 2.13% or 229.42 points, which allowed it to move to the level of 11,012.24 points.
The European stock market, on the other hand, is in an extremely depressed mood on Thursday. The day before, rapid growth stopped just as quickly and was replaced by a rollback in the opposite direction. Market participants began to express serious concern about the growth rate of the region's economy, which, judging by all statistics, is significantly slowing down. Investors experienced even more negative emotions after reports that the US authorities did not intend to revise the tariffs for Airbus, as well as for a number of other goods from Europe.
The volume of duties on goods imported from the EU to America will remain unchanged at $ 7.5 billion. In addition, duties on goods remained at 15% and on airplanes at 25%.
The general index of large enterprises in the Stoxx Europe 600 region dropped 0.38% to 373.44 points.
The UK's FTSE 100 fell 1.26%, the largest drop in the region.
The German DAX Index dropped 0.36%.
France's CAC 40 Index fell 0.32%.
Italy's FTSE MIB Index parted from 0.31%.
Spain's IBEX 35 Index fell 0.52%.