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Sentiment improved in the global stock market

Highlights:

  • USA
    The Dow Jones increased by 0.49% or 167.03 points, to 34,086.87. Meanwhile, the selective S&P 500 advanced by 0.44% or 19.29 points, to 4,373.48. The Nasdaq added 0.24% or 35.25 points, to 14,781.64.
  • ASIA
    The Tokyo Stock Exchange does not operate due to the celebration of the national holiday.
    The Kospi closed with a loss of 0.41% or 12.93 points at 3127.58.
    The Sensex closed with an increase of 1.63% or 958.03 points to 59,885.36. Nifty added 1.57% or 276.30 points to 17,822.95.
    The Hang Seng Index rose by 1.19% to 24,510.98 points.
  • EUROPE
    EThe EuroStoxx 50 index climbed by 1.03%, and the Stoxx 600 progressed by 0.98%.

Wall Street rose before the Fed’s statement

Wall Street settled in the positive territory ahead of the Federal Reserve meeting. 

The Dow Jones increased by 0.49% or 167.03 points, to 34,086.87. Meanwhile, the selective S&P 500 advanced by 0.44% or 19.29 points, to 4,373.48. As for the Nasdaq, it added 0.24% or 35.25 points, to 14,781.64.

The New York stock market recovered after an uneven start to the week due to the Evergrande crisis.

Investors are now waiting for the Fed’s monetary policy release and new forecast at 6:00 pm GMT. It will be followed by a press conference by its chairman, Jerome Powell hoping to give a more clear idea of the tapering schedule. A gradual decrease in central bank bond purchases is expected in the coming months.

 

Meanwhile, all sectors operated in green, and the energy sector led by an increase of 2.23%. At the same time, the financial sector advanced by 1.39%, and basic materials added 1.15%.

Most of the 30 stocks listed on the Dow Jones posted gains. Chevron posted the most significant increase, surging by 2.16%. Meanwhile, Caterpillar added 2.05%, JPMorgan Chase increased by 1.97%, and Dow Inc gained 1.93%.

As for losers, UnitedHealth was the most affected, dropping by 1.24%.

Outside of that group, FedEx shed 8% after reporting lower quarterly profits and lowering its business forecasts due to the lack of workers. 

 

The Kospi lost 0.41%

China Evergrande’s crisis is far from being over. It continues to affect stocks. Mainland Chinese stocks traded mixed on Wednesday. The bankruptcy crisis of Evergrande, a large real estate development company, referred to as the Chinese version of Lehman Brothers, had an impact on the Korean stock market. 

The Kospi closed with a loss of 0.41% or 12.93 points at 3127.58. Although foreign investors net bought 559.2 billion won, individual investors and institutional investors net sold 309.9 billion won and 227.3 billion won, respectively. 

 

Analysts believe that from now on, market interest will shift from tapering to economic and corporate profits. However, the factors that made the Korean stock market sluggish compared to the global stock market in the second half of the year may be reduced.

Yuanta Securities recommended economic recovery-related stocks and dividend stocks as promising sectors for the fourth quarter. Re-opening stocks are expected to deliver clear results next year, and dividend stocks that can respond when volatility is high.

 

Power and paper stocks advanced on the Hang Seng

 

Hong Kong stock market opened sharply higher on Thursday, but the gains gradually narrowed. Real estate and property management stocks continued to rebound. Power stocks performed strongly, and paper stocks soared. 

Consumer stocks such as beer and sporting goods fell, and the chip shortage dragged down auto stocks.

The Hang Seng Index rose by 1.19% to 24,510.98 points. Meanwhile, the Hang Seng Technology Index gained 0.93% to 6,300.49.

 

China’s Evergrande soars in the stock market

 

The Chinese real estate giant Evergrande soared after announcing that it will face the next interest payment on bonds denominated in yuan today. However, it has not been confirmed yet whether it will do the same with bonds denominated in dollars.

The company’s securities surged more than 31% at the opening of the session on the Hang Seng. At the end of the trading day, the advance had been reduced to 17.62%.

Recently, Evergrande stocks have lost more than 91% of their value after their peak.

Evergrande’s stock market value has dived nearly 40% in August and more than 80% since the beginning of the year.

The specialized media pointed out that today’s increases were due to the announcement. This calmed the spirits of some investors – mostly Chinese, as domestic buyers account for 80% or more of the holdings of Chinese offshore bonds.

Despite the positive news, Evergrande has to face the maturity of some $37,000 million of loans to return before the end of the first half of 2022. It’s a part of its total liabilities, which amount to more than 300,000 million dollars.

 

Evergrande’s announcement boosts Southeast Asian exchanges

 

The Southeast Asian stock markets ended the day with gains boosted by Evergrande’s announcement.

Singapore stock market advanced by 0.93% or 28.29 points, and the Straits Times Index stood at 3,076.

The Jakarta stock gained 0.56% or 34.45 points. The JCI index settled at 6,142.71.

In Malaysia, the Kuala Lumpur market increased by 0.67% or 10.32 points, ending at 1,539.34.

The Bangkok stock added 0.71% or 11.56 points, and the SET index closed at 1,631.15.

The Manila Stock Exchange climbed by 0.36% or 24.55 points, and the PSEi composite index closed at 6,915.28.

The Ho Chi Minh stock index in Vietnam closed with an increase of 0.15% or 2.08 points at 1,352.76.

 

Sensex and Nifty jumped following a trend in the global markets

 

After facing endless volatility this week, there was an atmosphere of enthusiasm in the Indian stock market today. 

The BSE Sensex opened at 59,358.18 points today, adding 430.85 points.

At the very beginning of trading, there was strong selling pressure in the market. However, soon after, buyers took the lead, and the index started moving upwards again.

The Sensex closed with an increase of 1.63% or 958.03 points to 59,885.36. 

Like the Sensex, Nifty also advanced today. It added 1.57% or 276.30 points to 17,822.95. 

 

Europe on the rise

The main European stock markets grew sharply this morning. Investors digested the announcement of upcoming monetary tightening without difficulties. They also reacted little to the PMI activity indices in Europe, which showed a significant slowdown in private sector growth in September.  

The EuroStoxx 50 index climbed by 1.03%, and the Stoxx 600 progressed by 0.98%.

Economists observe that the Fed seems to have far succeeded in announcing the gradual withdrawal of its support for the economy and the markets without generating stress or a rise in interest rates.

All sectors in Europe are trading in positive territory. Technology experienced the sharpest increase of 1.76%. Banks, financial services companies, automotive, and distribution sectors all advanced more than 1%.

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