|Staff Reporter |||Apr 13, 2020 07:32 PM EDT|
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This Monday, Chinese stocks opened lower as investors were seen focusing on profit-taking after China's economic recovery last week. The shift was also inspired by the jump on oil prices after an international deal to cut oil outputs was finalized.
Mainland China's benchmark Shanghai Composite Index declined by 0.66 percent or by 18.50 points to 2,778.13. The Shanghai Composite Index made the basis of China's second stock exchange also declined by 1.11 percent or by 19.00 points to 1,702.22. Hong Kong's stock market, on the other hand, remained closed for a public holiday.
According to Bloomberg, US equity futures also dropped while stocks in Japan, China, and South Korea are expected to decline as well as some markets remained closed for the Easter holiday. The US dollar, in particular, declined after OPEC+ imposed an oil cut of 9.7 million barrels per day from the global crude output, lower than the initial plan of the 10-million barrel cut. The yen, on the other hand, increased but the Australian dollar dropped.
The report claimed that the earnings season would start this week as investors hope for a better perspective on how bad the pandemic affected global profits. Investor uncertainty has been a recurring problem since the pandemic shocked the world-threatening companies that could not establish measured contingency plans for the short-term future.
According to the Federal Reserve Bank of Minneapolis President Neel Kashkari, the US economy might not recover faster and may remain stagnant for 18 months of rolling shutdowns due to a lack of effective therapy or vaccine to remedy the pandemic effects.
The Strait Times Index, on the other hand, was down by 9.91 points or 0.39 percent at 2,561.41 points. The Korea Composite Stock Price Index also decreased by 7.40 points or 0.40 percent at 1,853.30 points. The S&P 500 had no trading including the Dow Jones Industrial Average and the Nasdaq Composite Index due to the Easter Sunday holiday. The same goes for the DAC Index, the FTSE 100 index, and the Paris CAC 40.
According to Nasdaq, the Chinese market altered between positive and negative yields through the last 11 trading days since the end of its two-day winning steak in the global market. During its recovery, the Chinese market rose to 120 points or 4.5 percent. The Shanghai Composite Index is now above the 2,795 thresholds indicating a mild recovery this Monday.
The global forecasts for the Asian markets were then reported to be optimistic about the hopes of states establishing methods to battle the adverse effects of the pandemic in their respective territories. The US, European, and Asian markets were tipped to see mild upsides soon.
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