On Thursday most global stocks stepped into the bear market territory. Selloffs are likely to continue on Friday, however much will depend on the economic updates due later in the day in Europe and the US.
Russian floors have started off Friday higher, attempting to
rebound after Thursday’s losses. The MICEX advanced 1.2 percent
in the early trade to 1295.06, while the RTS added 1.32 percent
On Thursday Russian stocks closed lower, however after America
released a positive reading on US economy. MICEX ended Friday
1.49 percent lower at 1281.89, and RTS closed down 0.16 percent
at 1261.63 on strengthening Russian ruble.
Most European bourses closed mixed on Thursday following heavy
losses in Japan. The World Bank’s revised growth forecast for
China’s economy of just 7.7 percent from an earlier reading of
8.4 percent signaling slowdown on lack of investment added to the
The benchmark Stoxx 600 index slipped 0.1 percent to 290.51. The
UK’s FTSE 100 index of leading shares added 0.1 percent to
6304.63, Germany’s DAX declined 0.6 percent to 8095.39 and
France’s CAC 40 ended up 0.1 percent to 3797.98.
On Friday eurozone is to release official data on consumer price
inflation, which accounts for the majority of overall inflation.
US stocks rallied Thursday on positive reports from the US job
market and optimistic update on retail sales, easing concerns
over a steep fall in Japan.
The Dow Jones industrial average jumped 1.2 percent, to
15,176.08, ending its three-day-long series of losses.
The S&P 500 gained 1.5 percent, to 1,636.36, and the NASDAQ
gained 44.94, or 1.3 percent, to 3,445.37.
The US will round up the week with data on producer price
inflation, industrial production, the capacity utilization rate,
the current account and preliminary data from the University of
Michigan on consumer sentiment.
Investors however are still worried over the Federal Reserve’s
and other central banks’ intention to pull out of their stimulus
programs of pumping money into the financial systems of their
states. The situation in Japan also concerns investors.
Stocks in Asia rebounded Friday after the massive drop in Japan
on Thursday. Investors were encouraged with good news from the
Tokyo’s Nikkei 225 advanced 2.4 percent to 12,748.33, rebounding
from Thursday’s 6.4 percent drop that dragged the stocks into
“bear market” territory.
China’s Shanghai Composite gained 0.2 percent to 2,152.96 after
Thursday’s 2.8 percent loss. Hong Kong’s Hang Seng gained 1
percent to 21,093.50 and South Korea’s KOSPI added 0.2 percent to
Taiwan’s Taiex index lost 0.4 percent to 7,916.76 and Australia’s
ASX S&P 200 rose 1.7 percent to 4,776.60. Benchmarks in
Singapore, Philippines, Indonesia and New Zealand also grew.
Oil is currently trading lower with Brent losing 0.37 percent to
$104.50, and WTI trading 0.2 percent lower at $96.70.
This article originally appeared on: RT