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09.12.2020 03:23 PM
Stock markets in Asia and Europe traded in green zone

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Asia-Pacific Stock Exchanges shows positive dynamics in almost all areas on Wednesday, with the exception of the Chinese indicator, which began to reduce its positions against the background of new, not too good statistics on economic growth.

The major stock indexes are growing against the background of strengthening that occurred on the US stocks. On Tuesday, the US indexes were able to once again update their maximum values, following the results of the trading session. These are the S&P 500 and NASDAQ, in particular.

The positive mood began to be felt immediately after it became known that the US FDA issued all the necessary permits for the coronavirus vaccine developed by Pfizer and BioNTech. This means that the government can start emergency vaccination as early as next week. In the UK, mass vaccination already began on Tuesday.

In addition, stock markets strengthened well on the back of news about the activation of the negotiation process for the adoption of a new financial incentive program.

Representatives of the US Congress are set to meet on Wednesday for the votation on extending funding for public institutions for another week. If the congressmen fail to reach a consensus, the government faces a temporary suspension of activities.

Japan's Nikkei 225 is up 1.1% today.

China's Shanghai Composite index, on the contrary, sank 0.4%. The Hong Kong Hang Seng index did not support the negative trend and rose by 1%. The reason for the sharp change in the trend was an unexpected drop in the level of consumer prices in China. This situation hasn't happened in quite some time. The last time the country experienced deflation was more than eleven years ago.

South Korea's KOSPI jumped 1.5%.

Australia's S&P/ASX 200 Index rose 0.6%. It should be noted that the growth was recorded for the seventh time in a row.

Meanwhile, European stock exchanges exhibited growth amid the expectation of the visit of British Prime Minister Boris Johnson to the head of the European Commission in order to settle certain parties to the Brexit agreement.

In addition, the news about the coronavirus vaccine and the beginning of its use in the United States added optimism to market participants.

News about the possible expansion of the financial incentive program in the US, by $916 billion, is also important. At the same time, direct payments to American residents in the amount of $600 per person will be taken into account.

However, there are also enough negative factors in the market. The news about the introduction of an even stricter quarantine for coronavirus in certain regions of the world seriously frightens investors who are so hoping that the COVID-19 vaccine will still work and the pandemic will recede, allowing the global economy to begin a rapid recovery.

Meanwhile, the number of infected people in Germany continues to increase. Over the past day, more than 29,000 new cases were detected there, which was a record figure for the entire history. The growing number of deaths is also alarming.

The general index of large enterprises in the European region STOXX Europe 600 climbed 0.42% to 395.31 points.

The UK FTSE 100 Index gained 0.53%. The German DAX Index rose 0.8%. France's CAC 40 Index climbed 0.24%. Spain's IBEX 35 index jumped similarly by 0.24%. Italy's FTSE MIB Index dropped unexpectedly, showing a 0.13% contraction.

Maria Shablon,
Analytical expert of InstaForex
© 2007-2025
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