Financial markets regain calm, after Aug. 5 slump - media
Kyiv • UNN
World stock markets are recovering after yesterday's collapse. Indices are growing, but experts warn that stabilization may be temporary and depends on the US economy and the Fed's actions.
After one of the worst volatility in recent memory, financial markets seem to have stabilized, stock indices are up, recouping some of the losses from the crash.
Writes UNN citing Bloomberg and Forbes.
Details
World stock markets are recovering from the August 5 slump. European stocks lost early gains, but today 10-year bond yields went up for the first time in nearly two weeks.
Many investors said there is no reason to fear a looming U.S. recession. Buying the S&P 500 after falling 5% has been profitable for the past four decades, strategists at Goldman Sachs Group Inc. recalled. Japan's Nikkei 225 and Topix indexes, after suffering their biggest collapses since Black Monday in 1987, rose about 10%. The yen, though down 1.5%, regained most of its losses.
Japan remains the epicenter of volatility, however - "sharp moves have activated a circuit breaker for futures," reports Bloomberg.
Bloomberg: Global Sugar prices fall to two-year lowAug 5 2024, 03:26 PM • 20789 views
The respite may be temporary. Further circumstances depend on how the US economy behaves and the Federal Reserve's response. Christopher Dembick, Senior Investment Advisor at Pictet Asset Management believes that "August will be colored red". However, there are views on a temporary adjustment.
A hotter than expected ISM services report slowed the bleeding on Wall Street..... So what we're seeing is not a rally in favor of risk per se, but a healthy correction after an unhealthy sell-off caused by investors rushing to the tiny exit
Recall
Stock markets in the US, Europe and Asia fell sharply in the past 24 hours amid fears of a slowdown in the US economy. The S&P 500 and Nasdaq indices fell by 4.1% and 6.3% respectively, the FTSE 100 fell by 2.8% and the Nikkei 225 by a record 12.4%.
