The Pessimism That Roiled The Globe

There is an impression that the markets are moving up and down, without having the opportunity to decide on a further direction. One day, indices are growing, another day, they are decreasing, thereby leveling all growth of the previous sessions.

Yesterday, the European indices finished the trading day in different directions. At the beginning of the trading session, investors won due to positive news from the USA. After that, some of the indices began to fall, due to the fact that there was not a lot of macroeconomic statistical data published. As a result, the index of the London stock exchange, the FTSE 100, grew by 0,1%, the index of the Parisian stock exchange, the CAC 40, lost 0,66%, and the index of the Frankfurt stock exchange, DAX, decreased by 0,55%.

A pessimistic mood began in Europe and was followed by American indices. We saw a substantial increase in the price of indices on Wednesday, but it seems that after that, stock markets decided to have a correction. A push factor was the statistical data on export and import in China, which appeared to be extremely lower than the predictions of analysts. Import of the country made a number of minus 11,3%, at an expected growth of 2,4%. Export appeared to be minus 6,6% at the expected 4,0%.

However, the statistical data coming from the U.S. was of a positive character, but indices could not find strength to move up. The number of primary requests for unemployment benefits in a week, appeared to be slightly less than expectations on 320 thousand, and made a number of 300 thousand. As a result, the Dow Jones Industrial Average index fell by 1,62% to the level of 16170,22 points, the S&P 500 lost 2,09% and reached a level of 1833,08 points, and the Nasdaq Composite had the biggest loss of the day and decreased by 3,1% to the level of 4054,11 points.

Prices of commodities are stable. Brent and WTI are losing 0,26% and 0,30%, traded on levels of $107,24 and $102,07 per barrel. Gold is flat, traded on a price of $1320,86 per troy ounce. Silver is down by 0,24% at $20,04 per troy ounce.