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US stock exchanges ended Monday's trading with multidirectional dynamics. The Dow Jones Industrial Average and Standard & Poor's 500 indicators showed negative dynamics, while the Nasdaq Composite, on the contrary, showed good growth which allowed it to reach its record value and update it for the forty-first time this year.
The Dow Jones index fell 0.78% or 223.82 points, which moved it to around 28,430.05 points.
The Standard & Poor's 500 index decreased by 0.22% or 7.7 points. Its current level is at around 3,500.31 points.
The Nasdaq Composite Index, on the contrary, became the only one that was in positive territory at the end of Monday's trading after gaining 0.68% or 79.82 points, which moved it to 11,775.46 points.
The dynamics of the Dow Jones for the month of August came out quite good adding 7.6%. The S&P 500 also rose 7% which is its best monthly gain in thirty-five years. Nasdaq became took the lead in growth with a 9.6% gain over the last month of the summer, which also became its record increase over the past twenty years.
If we evaluate the dynamics of the growth of indicators over the last five months, then great results were also recorded here. The Dow Jones gained 29.7% from March to August. Such growth has not been observed in eleven years. The S&P 500 jumped 35.4%, breaking a record for over eighty years. The Nasdaq index showed the most outstanding results gaining 52.9% in five months.
The main wave of positive emotions in the stock market is associated with the expectations of the release of a vaccine against coronavirus infection, which gives participants hope that the pandemic may end soon. This news was supported by the speech of the head of the US Federal Reserve System. The new flexible inflation targeting policy is favored by the investors since it maintains stimulus measures for an extended period, and also makes the fight against unemployment the main task of the entire monetary policy of the country.
Asian stock exchanges, on the other hand, traded in a green zone on Tuesday which was mostly swayed by the positive statistics from China.
The PMI index in China's industrial production sector in the last month of summer reached its highest values in the previous nine years. This happened due to the rapidly growing demand for goods in this sector, both within the country and abroad. The indicator rose to 53.1 points, while earlier it stopped at around 52.8 points, which was already good, since the value is above the 50 point level, which indicates an increase in business activity. Experts' preliminary forecasts were more modest with an expected increase of 52.6 points. Note that the indicator has been above 50 points for four consecutive months.
The sub-indices, reflecting production and the number of new orders for the last month of summer, also showed growth. In addition, for the first time in the current year, an increase in the number of export orders was recorded in the sector. However, problems were also not avoided. The index showing employment is still consolidating below the strategically important mark of 50 points, which indicates a decline in this section, which has been happening for eight consecutive months. Nevertheless, most analysts perceived the new statistics from China as a signal for an active recovery not only of a single sector but of the country's economy as a whole. Especially that the growth in supply followed an increase in foreign demand for Chinese-made goods.
Japan's Nikkei 225 index remained in almost the same condition as it was on the previous day. However, the country's statistics is not so positive. Unemployment in the second month of the summer increased by 2.9%, which was not a significant rise since the previous figure was at around 2.8%. One way or another, these numbers are the highest over the past three years. Analysts, however, expected an increase of 3%.
China's Shanghai Composite index slightly went down by 0.06%. The Hang Seng index of Hong Kong did not support this trend and increased by 0.04%.
South Korea's Kospi Index rose decently at 1.06%.
The Australian S & P / ASX 200, on the contrary, has significantly lost ground which fell 1.77%. As initially expected, the country's main regulator decided not to change the interest rate upward and left it at the same, record low level of 0.25% per annum. However, the Reserve Bank has made the mechanism for financing small and medium-sized businesses for a period of three years even larger with an increase of $ 200 billion. So far, Australian authorities are happy with the way the state's economic recovery is going against the backdrop of the coronavirus crisis. In their opinion, the recession was not as serious as previously assumed, which means that the recovery process will be easier too.
Meanwhile, there are no uniform dynamics on the European stock exchanges on Tuesday as the main stock indicators have diverged on different sides. The reason for this should be sought in the publication of a new portion of statistics.
Consumer prices in the European region decreased by 0.2% on an annualized basis, which came as a complete surprise to experts. This result was recorded for the first time in the last four years. Preliminary data reflected an increase of 0.2%, which ultimately never happened.
The unemployment rate in the nineteen states of the region in the second month of summer was around 7.9%, which is the highest value for the last two years. The growth is still due to the impact of the COVID-19 pandemic. Meanwhile, analysts are expecting the worst result with an unemployment rate of 8%.
The general index of large enterprises in the European region Stoxx Europe 600 increased by 0.23% and moved to the level of 367.34 points.
The UK FTSE 100 index fell quite significantly by 1.01%. Spain's IBEX 35 index sank slightly by 0.06%. On the other hand, the German DAX index strengthened its position and increased by 0.69%. France's CAC 40 followed suit and gained 0.15%. Italy's FTSE MIB Index is up 0.38%.
In general, according to the results of the last month of summer, the main indicators of the EU showed positive dynamics.
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