08.07.202014:56 Forex Analysis & Reviews: Stock markets worldwide declined

There were no single common dynamics in the changes in the stock exchanges of the Asia-Pacific region this morning. Indices move in different directions in response to the worsening situation in the economy still in connection with the rapid increase in the number of COVID-19 patients around the world.

Over the past few trading sessions, Asian stocks have been restored amid expectations of a quick economic recovery in the region. Many companies resumed their activities after lifting quarantine measures imposed during the COVID-19 pandemic, which positively affected the index of business activity in various sectors of the economy. However, new cases of infection began to spread rapidly throughout the region and the world as a whole, which forced market participants to practice moderate enthusiasm and take a more balanced approach to their work. Hopes for a quick restoration of economic growth have virtually disappeared, due to the growing fears of a second wave of the pandemic and the ensuing restrictive measures.

However, extensive measures on the part of governments and the main regulators of states act as support. Almost everywhere incentives are introduced and a soft monetary policy is pursued. It favorably affected the improvement of the situation in the economy.

Japan's Nikkei 225 Index began to sag this morning and has so far lost 0.5%.

China's Shanghai Composite Index, on the contrary, begins to recoup its losses yesterday and rises by 0.5%. Hong Kong's Hang Seng Index follows with an increase of 0.4%.

The South Korean Kospi index shows a slight, but still negative trend, which fell by 0.1%.

Australia's S & P / ASX 200 index is down by 1.23%. So far this is the biggest loss in the region.

A negative trend is also observed in the American stock markets. Yesterday, the main indices were marked by a rapid decline. The Nasdaq and S&P 500 index were particularly affected, which had to move from a tremendous rise to an equally significant reduction. Market participants in the Asian region expressed extreme concern amid a sharp spread of coronavirus infection in the United States and Latin America. Previously, this factor was almost leveled by good statistics on the economy, but today investors again drew attention to it.

The Dow Jones Industrial Average index fell 1.51% or 396.85 points, which forced it to move to the line at 25,890.18 points.

The Standard & Poor's 500 Index lost 1.08% or 34.40 points and is currently at the level of 3,145.32 points.

The Nasdaq Composite Index showed a decrease of 0.86% or 89.76 points, which lowered it to 10 343.89 points.

Most investors decided to abandon the action and stay on standby. Two multidirectional factors are perceived differently by market participants: statistics on the economy that contribute positively, and a tense epidemiological situation for which a solution has not yet been found.

According to the unconfirmed data of the American government, the new support measures will be more modest than the previous ones. So, the next anti-crisis package will not exceed $ 1 trillion, or perhaps even less than this amount. At least most politicians insist on cutting back on this item.

Meanwhile, US authorities have made an ambiguous decision to withdraw the country from the World Health Organization. This is primarily due to failures in the localization of coronavirus outbreaks in certain territories. The US government intends to wait for the results of the incident investigation, and only then will it make a final decision regarding its membership in WHO. However, at present, their participation in the organization has been suspended. This makes investors feel more anxious on the situation.

European stock markets also sagged today. After the opening of the trading session, a decrease was noted in all directions.

The UK FTSE index fell by 0.2%. The German DAX Index dipped 0.3%. The French CAC 40 index fell the most by 0.5%.

There are enough reasons for negative dynamics. So, this morning, the head of the European Central Bank, in his speech noted that the regulator so far does not intend to make changes to its monetary policy and will leave everything as it is for an indefinite time. Recall that earlier, there were several adjustments done. The volume of the program to redeem bonds was doubled to 1.35 trillion euros or 1.52 trillion dollars.

Meanwhile, there are positive aspects that are associated with the economic growth of France, which is the second-largest EU economy. According to preliminary estimates, the French economy will be able to increase 19% in the third quarter of this year, and in the fourth, it will add another 3%. This will be one of the most notable rises in the region.

However, the rapid increase of the COVID-19 cases in the world is forcing market participants to switch to more restrained work, which immediately affects the current level of the region's main indices.