28.09.202014:47 Forex Analysis & Reviews: US and Asian stocks finally got out of negative zone

The US stock exchanges got out of the negative zone as significant rises began to be noted Friday last week. The major stock indexes began to grow against the background of positive dynamics in the share price of companies in the technology sector.

The Dow Jones Industrial Average rose 1.34% or 358.52 points, which allowed it to regain some of its losses and rise to 27,173.96 points.

The S&P 500 Index added 1.6% or 51.87 points. Its current level was at around 3,298.46 points.

The NASDAQ Composite index became the growth leader which jumped immediately by 2.26% or 241.3 points. This moved it to 10,913.56 points.

Despite the significant rise, the indicators did not manage to avoid a fall over the week. The Dow Jones, and S&P were in the red zone for the fourth time in a row, which was the longest negative period since August last year. Weekly losses for the Dow Jones amounted to 1.8%, while the S&P lost 0.6%. The NASDAQ index, on the other hand, did not support the negative dynamics of its colleagues and became the only one who managed to increase positions by 1.1% over the week.

The US stock market is under serious pressure in light of the news of a worsening epidemiological situation in the country and the world. Market participants expressed concerns about the need to introduce new restrictive quarantine measures that may create an even more devastating impact on the economy of the state, which has not yet fully recovered from the previous wave of the pandemic.

However, there are also opposite opinions on this matter. The Chairman of the Federal Reserve Bank of St. Louis believes that the US economy may well recover and return to pre-crisis levels by the end of this year. So far, his words have not yet aroused the support of colleagues, especially since to achieve the necessary result, GDP growth in the third quarter should be achieved by about 35% in terms of a year, and in the fourth quarter by 10.3%. Of course, no one really counts on such results.

In connection to this, a new batch of statistics on the US economy continues to arrive. This includes another indicator of the volume of orders for durable goods which rose 0.4% in August indicating its continued recovery. In addition, the same indicator for July of this year was revised: according to new data, an increase of 11.7% was noted. Despite the overall positive mood, preliminary data from analysts indicated a more significant increase, which in reality did not happen. Growth of 1.5% was expected in August.

The Asian stock exchanges also noted positive dynamics on Monday which could not be stopped even by the news about the introduction of sanctions in the US against Semiconductor Manufacturing International Corp., a company from China.

Japan's Nikkei 225 Index rose 0.88%.

China's Shanghai Composite Index slightly added 0.12%. The Hong Kong Hang Seng Index maintained positive momentum and gained 0.83%. Market participants are actively responding to fairly good statistics on the total profit of industrial enterprises with annual revenue of more than 20 million yuan. Thus, this figure for August increased by 19.1% on an annualized basis, which allowed it to reach £612.8 billion, or $90 billion. All of this was a testament to the growing profits of industrial companies for four consecutive months. Note that in July this year it also increased significantly by 19.6%.

Last Sunday, a federal judge blocked the sanctions imposed by US President Trump against the Chinese app TikTok for an indefinite period. Earlier an order was received prompting the removal of the app from all specialized stores in the US.

South Korea's Kospi index increased 1.39%.

The Australian S & P / ASX 200 index, on the contrary, became the only one in the region that slightly lost its positions by 0.01%.