FX.co ★ Europe and Asia stock indices changes in different directions: no signs of growth

On the last business day this week, stocks in the Asia-Pacific region showed growth. Of course, market participants continue to be energized amid a new wave of coronavirus infections in the United States and China. The escalation of the conflict between the same countries adds even more negative. Nevertheless, today the market does not take this news with due seriousness.

Recall that in the middle of last week, the Chinese authorities made a statement that new cases of COVID-19 infection began to be recorded in the country. To date, the outbreak continues to spread and the number of hospitalized is more than 200 people. Nevertheless, the state authorities hastened to assure the general public that the situation was under control and the further spread of the infection would be limited. However, neither tomorrow nor in the following days, the number of cases will not be zero, for some period you will have to deal with growth.

As a result, investors were not too serious about the outbreaks of COVID-19, which began to be celebrated with renewed vigor not only in the United States and China but also in Latin America and South Asia. A possible second wave of the pandemic has ceased to frighten private traders, as it has moved into the potential zone.

But the reason for the growth has appeared quite real and sustainable. So, traders believe that the Federal Reserve of the United States of America has fallen into a difficult and controversial situation. On the one hand, the stimulating policy has proved to be quite good in supporting the economy but has now ceased to operate at full strength, and on the other, it is impossible to stop it immediately, because the markets will be extremely disappointed and will inevitably roll down. Consequently, while investors have nothing to worry about, the progress will continue for some time to come.

Japan's Nikkei 225 Index gained 0.33%, while the South Korean KOSPI index dropped by 0.37%.

Australia's ASX 200 Index was up by 1.11%. Last month, it experienced extremely negative. Now the situation has begun to improve against the background of statistical data concerning a sharp increase in retail turnover by 16.3% immediately in the last month of spring compared to the previous period. At the same time, an equally sharp and significant drop was almost compensated for, which was recorded in April and was in the region of 17.7%.

Hong Kong's Hang Seng Index declined quite a bit by 0.09%.

China's Shanghai Composite Index rose to 0.50%. Followed by the Shenzhen Component Index, which showed an increase of 1.07%.

European stock exchanges today have not found a single dynamic. Indices are moving in different directions, and market participants are trying to determine what is more important for them: the danger of a second wave of a pandemic or the hopes that will accelerate the recovery of the economies of the countries that are becoming real.

Germany's DAX index jumped by 0.3%. The French CAC 40 index, by contrast, fell by 0.6%. The UK FTSE 100 index also fell by 0.5%.

Meanwhile, market participants have high hopes that additional support measures can positively affect the acceleration of economic growth in most countries of the region. At the same time, the fear of the second wave of COVID-19 here, as well as in the Asia-Pacific region, is also almost completely ignored. It should be noted that some investors nevertheless hastened to moderate their ardor and sided with more reliable assets.