Global stock markets are upset by concerns about growth


Stock update

Global stock markets recorded their worst week since June, as concerns about a slowing economic rebound and imminent US stimulus measures severely weighed on market sentiment.

The FTSE Global Index fell 1.8% this week. During this period, China has tightened data privacy regulations for its fast-growing technology industry, and countries such as Australia and New Zealand have implemented sudden lockdowns due to concerns about the coronavirus.

In response, investors turned to safe-haven assets such as the U.S. dollar while dumping commodities. The U.S. dollar index, which measures the U.S. dollar against other major currencies, rose 1% this week, the highest level in two months. Fearing that demand will be suppressed, the global benchmark Brent crude oil fell about 7.7% this week.

“Some time ago, the planets began to align-we have a very strong economic momentum around the world, and it is expected that the central bank will not take action for a long time, and it is strong. [equity] Valuation,” said Olivier Marciot, senior portfolio manager at the asset management company Unigestion. “Step by step, the planet has been misplaced, putting pressure on the market. “

The stock benchmark index regained some of its losses on Friday. In the United States, the Standard & Poor’s 500 Index rose 0.8%, while the technology-focused Nasdaq Composite Index rose 1.2% that day.

In Europe, the stock market rose later in the day. The European benchmark Stoxx 600 Index rose 0.3%. The FTSE 100 index closed up 0.4%. Cac 40 in Paris rose 0.3%, while Dax 30 in Frankfurt rose 0.3%.

Emmanuel Cau, European equity strategist at Barclays, said: “Just as the positive catalyst for strong earnings has passed and the technical side is weak, the new crown pneumonia, economic growth and policy concerns are resurfacing.” ‘Buy low’ mentality, although investors may remain on the sidelines for now.”

Asian stock markets started to sell off this week due to weak Chinese data, and it seems that they will face further pressure by the end of the week. The MSCI index in the Asia-Pacific market fell 1.9%.

The impact of China’s new data Privacy lawIt will take effect on November 1st, which has severely affected the sentiment of the entire region. The Hang Seng Technology Index of China’s largest Internet and e-commerce stocks, including Meituan, Tencent and Alibaba, fell 2.5%.

Tencent’s share price has fallen 11% this month, while Alibaba has fallen 16.5% so far this month.

This week investors also turned to safe-haven debt assets such as US and German sovereign debt, although there was little change on Friday. The 10-year government bond yield rose by 0.01 percentage point to 1.26%, while the German 10-year government bond yield rose by 0.01 percentage point to minus 0.496%. When prices rise, yields fall.

Oil prices closed lower, and Brent crude oil fell 1.9% to close at $65.18 per barrel, which was about $10 lower than the high reached last month, as the Covid variant affected demand.

The dollar fell slightly that day. The U.S. dollar fell 0.2% against the euro, and the common currency climbed to $1.1703. However, the pound rose 0.1% against the pound, and the pound fell to $1.3626.


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