14.09.202016:00 Forex Analysis & Reviews: Stock exchanges in US traded in red zone, while Asia and Europe experienced growth

There was a multidirectional movement in the main indicators of the US stock exchanges on Friday. The Dow Jones and S&P 500 indexes increased their positions, while the Nasdaq, on the contrary, rushed down and recorded its maximum weekly drop, which has not happened since the beginning of March this year. However, at the end of the week, all indicators were in the red zone: the Nasdaq declined by 4.1%, the Dow Jones by 2.5%, and the S&P 500 by 1.7%.

Companies in the US technology sector also recorded a significant decline last week, which worries market participants about the further dynamics of exchange indicators. Most experts say that investors will have to face quite significant volatility in the market, which, as a trend, will prevail over the next few months. All the fundamental factors point to this. The level of coronavirus infection in the world remains high and occupies almost all the attention of traders. In addition, the upcoming presidential election is bringing turmoil to the markets. Another pressure factor is the unresolved situation around Brexit. However, the greatest tension is still associated with the aggravation of the conflict between the US and China, which regularly forces market participants to reconsider their work.

The decline in US stock markets, among other things, is also due to the rejection of a bill proposed by the Republicans on a new package of incentive payments. The Democrats have allegedly found some points fundamentally inappropriate.

In addition, the statistics released on the last day of the week also disappointed analysts and market participants. According to the US Department of Labor, the level of consumer prices in the country over the last month of the summer increased by 1.3% compared with the same period a year earlier. All this was evidence of the acceleration of inflation rates compared to the July index of 1%. However, initial forecasts practically coincided with the real ones with an estimated growth of at least 1.2%.

Moreover, the level of the state budget deficit in America at the end of the summer amounted to $ 200.1 billion, while in the same period a year earlier it consolidated by $ 200.3 billion, and last month it was $ 63 billion. The negative budget balance over the past eleven months has reached $3 trillion 7.4 billion, which is three times more than the same indicator last year.

The Dow Jones Industrial Average was up 0.48%, or 131.06 points, at the end of Friday's trading, which allowed it to reach 27,665. 64 points.

The S&P 500 index gained 0.05% or 1.78 points. Its current mark is 3,340. 97 points.

The Nasdaq Composite index, on the other hand, did not support the overall positive mood and reduced its positions by 0.6% or 66.05 points. This moved it to a position of 10,853. 55 points.

Meanwhile, Asian stocks showed mostly positive dynamics of changes in the main exchange indicators on Monday. Market participants anticipate the meeting of the main US regulator-the Federal reserve service, as well as the Bank of Japan. However, today's positive market participants experienced on the news about the resumption of clinical trials of the coronavirus vaccine, which is conducted by AstraZeneca in conjunction with the University of Oxford.

Japan's Nikkei 225 index rose 0.58% in the morning. There is also a positive trend in the index of business confidence of large companies in the manufacturing industry. For the current month, it has already added 4 points and moved to the level of minus 29 points. Thus, this was the highest value for the last six months. In addition, the state is preparing for the appearance of a new Prime Minister of the country. So far, the main candidate for this post is the General Secretary of the Cabinet of Ministers, Yoshihide Suga. At least, this is the candidate who is determined to continue the course started by Shinzo Abe, aimed at maintaining low borrowing costs.

The Stoxx Europe 600 General index of large enterprises in the European region rose 0.27% this morning, which moved it to 368.94 points.

China's Shanghai Composite Index gained 0.26%. The Hong Kong Hang Seng Index supported the trend and climbed 0.67%.

South Korea's Kospi index jumped 1.14%.

Australia's S&P / ASX 200 index was up 0.35%. As it became known, the head of the government of the state of Victoria presented his plan for economic incentives. The document cites the total amount of incentives at $ 3 billion Australian dollars, which corresponds to about $ 2.2 billion USD.

European stock markets also noted a mostly positive mood on Monday. Major stock market indicators are growing, the reason for which is the hope for an early release of the coronavirus vaccine. At the very least, the resumption of clinical trials of the drug, which is being jointly prepared by the pharmaceutical company AstraZeneca and the University of Oxford, reassures investors.

The Stoxx Europe 600 General index of large enterprises in the European region rose 0.27% on Monday, which moved it to 368.94 points.

The UK FTSE 100 Index gained 0.16%. The German DAX index rose by 0.27%. France's CAC 40 index was up 0.46%. Spain's IBEX 35 Index rose 0.25%. However, there is one lagging behind among the positive movement: the Italian FTSE MIB index slightly (by 0.07%) reduced its positions.