The stock market in Europe has been on the rise today. Most indices rose in price. The reason for all the positive attitude of market participants from America. Recall that yesterday’s trading session has become one of the strongest in recent years. China also added some positive news, as it was able to achieve the best pace in industrial production, despite very modest forecasts.
The German DAX index rose 1.3%, the French CAC 40 index also rose 0.9%, and the UK FTSE index, which grew 1.2%, did not lag behind.
Pleased with the market data on the growth of industrial production in China. It is reported that this indicator became 3.9% higher in April compared to the previous month. Moreover, the growth rate of industrial production in reality turned out to be much higher than the expected values. Most analysts were inclined to believe that they could not rise above 1.5%. The increase in positive dynamics may indicate that China’s industry, contrary to estimates, is moving to a process of active recovery. Some fears can only be caused by the fact that retail sales in the state have plunged quite seriously, their decline amounted to about 7.5%. But even this could not spoil the mood in the market.
However, not without negativity. Thus, Germany’s GDP unexpectedly seriously declined. The fall amounted to 2.2%, such figures have not been recorded for more than ten years since the crisis of 2009.
At the same time, the Asian stock market remained indecisive from news of the strengthening of the Chinese economy.
So, the Shanghai Composite index became slightly higher – by 0.02%, which was some compensation for the fall that occurred with it a day earlier. The Shenzhen Component Index, by contrast, declined 0.04%. The Hong Kong Hang Seng Index followed, which fell 0.35%. Japan’s Nikkei 225 Index posted an increase of 0.05%, while Korean KOSPI fell 0.02%. However, the Australian ASX 200 Index achieved the most significant results, an increase of 0.87%.
The Asia-Pacific region, in addition to data on industrial production in China, also estimated other statistics. So, the attention of investors was focused on the total number of unemployment claims in the United States of America. Recall that their number for the current week reached 2.981 million, and this reflects an increase of 36 million.
In addition, tensions between the US and China continue to worsen amid accusations by President Donald Trump towards his Chinese counterpart. Recall that the US leader believes China is guilty of the widespread spread of coronavirus infection, under the influence of which the economies of many countries of the world are collapsing. So far, none of the analysts has decided to judge what this tension will lead to and what sanctions against China will take effect. However, it is already clear that this process itself confuses market participants by limiting their actions.
There is also serious pressure on concerns about the new wave of the COVID-19 pandemic. Many experts believe that the removal of quarantine measures is too premature.
One way or another, analysts believe that in the short term, forecasts are more than favorable, but long-term ones may be in deep negative.
Naturally, this does not add to the positivity of investors who still prefer to work discreetly in the market.