empty
18.01.2021 04:16 PM
Europe and Asian stocks sank with the exception of China which recorded economic growth

This image is no longer relevant

The stock markets of the Asia-Pacific region traded in a negative trend on Monday morning, with the exceptions of China and Hong Kong, which reported growth amid recent positive economic statistics. China's GDP increased by 2.3% at the end of last year.

Nevertheless, the overall GDP growth rate in China was the smallest in the last forty years. However, this did not negate the fact that the state was almost the only one who was able to avoid a global fall amid the crisis associated with the coronavirus pandemic. For the most part, the economies of the countries experienced a decline last year, which they hope to compensate for in the coming year.

According to preliminary data from analysts, Chinese GDP was expected to grow by about 2.2%, but in reality, the data turned out to be even slightly better, which could not go unnoticed in the markets. Investors were extremely encouraged by this fact, which was immediately reflected in the stock indicators, which went up.

Particular growth was recorded in the last quarter of last year when the Chinese economy showed an immediate 6.5% growth, which is comparable to the pre-crisis indicators, when the monthly growth averaged 6.8%.

Although, some indicators still slowed down their increase. This may indicate a general decline in business activity in December last year, but it is too early to judge this: we need to wait for official statistics.

In the meantime, market participants continue to wonder whether the new American leader will be able to advance his decision on a serious increase in the financial assistance package for the economy of the United States of America. According to the latest data, only Democrats are on the side of the expanded funding program and their advantage in the Senate is minimal. This means that the chances of final ratification of the stimulus package are very small, although it still remains.

Japan's Nikkei 225 index fell 1% in the morning. According to statistics, the total volume of industrial production in the territory of the state for the last month of autumn last year was 0.5% less compared to the previous indicator. Such a drop is observed for the first time in the last six months and causes some concern among investors. Recall that in October, on the contrary, there was a significant jump by 4% at once.

China's Shanghai Composite Index rose 1.01%. The Hong Kong Hang Seng Index supported the positive trend and climbed 0.61%.

South Korea's KOSPI index dropped significantly by 2.01%.

Australia's S&P/ASX 200 Index fell 0.78%.

European stock exchanges also recorded negative this morning. Major stock indexes are losing their earned positions. The main reason for what is happening is the difficult epidemiological situation in most countries of the region. New strains of coronavirus infection, the extension of quarantine measures, problems with vaccinations, and the supply of drugs leave market participants almost no hope that the pandemic will be defeated in the near future.

The UK government, in particular, has decided to introduce mandatory quarantine for those arriving on the territory of the state. The period of self-isolation, in this case, is ten calendar days, after the expiration of which it is necessary to pass an analysis for COVID-19. The Austrian authorities are once again postponing the release date from the lockdown so that there is no sharp jump in the incidence in the country.

The general index of large enterprises in the European region STOXX Europe 600 fell 0.14% in the morning, which sent it to the level of 407.28 points.

The UK FTSE 100 Index declined 0.11%. The German DAX Index fell 0.07%. France's CAC 40 Index sank 0.25%. Spain's IBEX 35 Index was 0.3% down. The Italian FTSE MIB index was the only one with positive dynamics: it increased by 0.15%.

Maria Shablon,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Dow sheds nearly 2% as Wolfspeed, Target, and UnitedHealth drag market into crisis

Indices: The Dow plunged 1.91%, the S&P 500 dropped 1.61%, and the Nasdaq fell 1.41%. Wolfspeed tumbled following reports of a potential bankruptcy. Target sank after cutting its full-year sales

13:01 2025-05-22 UTC+2

US Market News Digest for May 22

Google shares posted a confident advance, driven by positive technical signals. Anticipating a continued uptrend, investors are setting target levels at 176.80, 186.27, and 194.41, making the stock appealing

Ekaterina Kiseleva 12:44 2025-05-22 UTC+2

Dow drops nearly 2% as Wolfspeed, Target, UnitedHealth plunge market into crisis

Indices: Dow down 1.91%, S&P 500 down 1.61%, Nasdaq down 1.41% Wolfspeed falls after bankruptcy report Target falls after cutting full-year sales forecast UnitedHealth falls after secret payment report, HSBC

Thomas Frank 10:06 2025-05-22 UTC+2

The Pound in a Trap: Why UK Inflation Is Scarier Than a US Recession

A new chapter is beginning on the currency market, and the British pound appears to be writing it. April's inflation data came as a real shock to investors: the UK's

Anna Zotova 00:05 2025-05-22 UTC+2

Falling indices, Tesla's surge, and Julius Baer's collapse: a day of sharp contrasts in the markets

Rge benchmark stock indices are falling: * Dow -0.27%, * S&P 500 -0.39%, * Nasdaq -0.38% Tesla is rising after Musk announced his willingness to return as CEO. Home Depot

12:40 2025-05-21 UTC+2

US Market News Digest for May 21

Following a staggering $8.6 trillion rally, the US market is showing signs of fatigue. Despite negative macroeconomic indicators and the recent US credit rating downgrade, Morgan Stanley maintains a bold

Ekaterina Kiseleva 12:23 2025-05-21 UTC+2

The Dollar Is No Longer King. What You Need to Know

Historically, the U.S. dollar has been the primary safe haven during crises such as wars, sanctions, and banking shocks; investors tend to flock to the dollar as their ultimate safety

Anna Zotova 00:59 2025-05-21 UTC+2

US Market News Digest for May 20

Despite the downgrade of the US credit rating and rising Treasury yields, retail investors remain active buyers of equities. Net purchases have surged to a record $4 billion, signaling confidence

Ekaterina Kiseleva 12:16 2025-05-20 UTC+2

Market Gains Modestly: Dow +0.32%, Nasdaq +0.02%, but Novavax Soars After Vaccine Approval

Dow Up 0.32%, S&P 500 Up 0.09%, Nasdaq Up 0.02% TXNM Energy Rises After Blackstone Deal Novavax Jumps After FDA Approval of Coronavirus Vaccine European Stocks Rise Slightly, as Utilities

Thomas Frank 11:18 2025-05-20 UTC+2

Bitcoin: What to Expect This Week. BTC Hits $107,000 – Can the Record Hold?

The leading cryptocurrency is fighting to maintain its position, even though it's not always smooth sailing. Currently, BTC is out in front, slightly simplifying the task of holding higher ground

Larisa Kolesnikova 00:40 2025-05-20 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.