22.12.202014:09 Forex-elemzések és áttekintések: Asian stock indices sharply declined, while the European ones recorded growth

The decline on the Asia-Pacific's stock markets continued this morning, which began the day before amid news regarding the appearance of a new, more dangerous, and strongly spreading strain of COVID-19.

In particular, the negative reaction of market participants is caused by the fact that the UK, where the COVID-19 mutation was found, began to introduce stricter restrictive quarantine measures, which should stop the massive spread of infection throughout the rest of Europe and the world. Many countries have already stopped transport links with the country, which caused the threat of a food blockade. It is clear that this affected investors' mood, who already had enough reasons to be worried lately.

A new wave of uncertainty literally hit the stock markets, forcing them to reduce previously recovered positions. Nevertheless, caution is now noted at every step of the market participants. They prefer to wait until much is known about the coronavirus strain than now.

Asia-Pacific's stock market:

This morning, Japan's Nikkei 225 Index declined by 1.2%. It was followed by China's Shanghai Composite Index, which went down by 0.8%. The Hong Kong Hang Seng Index supported the negative trend and was in the red zone by 0.9%. At the same time, South Korea's KOSPI Index fell by 0.7%.

The Australian S&P/ASX 200 Index also declined by 1.05% and even great statistics on the country's economic growth could not keep the indicator from falling. Moreover, the contraction has been taking place here for the third trading session in a row. According to the latest data, the level of Australia's retail sales in the last month of autumn increased immediately by 7%, against the previous reporting period. Such a sharp growth was recorded for the first time in more than six months. Analysts' preliminary forecasts turned out to be much more fair: a decline of around 0.6% was expected.

Europe's stock market:

Today, Europe's stock markets observed growth after yesterday's rapid and sharp decline amid news on the discovery of a new coronavirus mutation in the UK.

The general index of large enterprises in the European region – STOXX Europe 600 rose by 0.96% this morning, which allowed it to move to the level of 390.40 points.

The UK FTSE 100 Index also increased by 0.17%, followed by the German DAX index, which rose by 0.77%. France's CAC 40 Index is up by 0.77%, while Italy's FTSE MIB Index surged by 0.74%. Spain's IBEX 35 followed the positive trend and increased by 0.74% as well.

The main driving force behind Europe's stock indicators is still news about Brexit's negotiation process between the UK and the EU. Just yesterday, UK's Prime Minister, Mr. Boris Johnson rejected the possibility of extending the negotiations for next year. The position of the British authorities is very clear and clearly expressed – the transition period should end on December 31, 2020, as previously decided. There can be no renewals. However, there are still many controversial issues that need to be discussed before this year ends. Therefore, most experts no longer expect that the parties will manage to reach a compromise.