Yesterday, February 4, the stock markets of the Western European Union ended with the domination of the bullish trend. Despite the fall, which was triggered by the surge of Chinese coronavirus, global equity markets recover and show growth. The same thing happens with the Asia-Pacific region, if a couple of days ago, the market showed a drop, then yesterday trading closed with growth.
The phenomenon of “black Swan” disturbed many traders, after which they started to invest in more stable assets such as bonds or gold. Analysts At JPMorgan Chase & Co. I think that speculation assets may stimulate buying by traders. In addition, the decline in sales was influenced by the actions of the Chinese authorities, who have been taken to support the economy. It is worth noting that exciting is not only the situation in China and future trade negotiations between Britain and the European Union.
At the end of trading the composite index of the largest enterprises of the region Stoxx Europe 600 rose by 1.64% and amounted to 418,47 item, such indicators are the highest since December 2019. Special attention should be paid to the West European Union, the situation is much better than in other areas, as Britain's FTSE 100 climbed 1.55%, German DAX - on 1,81%, French CAC 40 - on 1,76%, Italian FTSE MIB gained 1.64 per cent and the Spanish IBEX 35 showed an increase of 1.68%.
At the moment, on the leading positions in Europe are resource companies, it is not surprising that the Stoxx Europe 600 Basic Resources jumped 3.5%, and stock quotes mining Anglo American (LON:AAL) gained 3.7%.
Securities of Swiss mining and trading company Glencore (LON:GLEN) rose as much as 5.2 percent. The price increase was triggered by the company's announcement that its plan for the recovery of copper mining in Africa succeeds. An important fact is that the Board of Directors of Glencore have entered the former head of the Chinese mining company China Molybdenum, the Kalidas of Madhavpeddi.
In the UK increased shares of oil company BP (LON:B), showing an increase of 4.2%. By the end of 2019 fourth quarter due to write-offs associated primarily with the divestiture, the company's profit fell 21% but exceeded analyst expectations.
But the leader of the fall growth was the company Micro Focus International, which is engaged in software development, where the stock fell 22.3%. Kevin Lusmore, who is the Chairman of the Board of Directors of the company, announced his resignation after the publication of the statements for 2019.
After the Italian manufacturer of sports cars Ferrari reported a net profit decline of 13% in the fourth quarter of last year, the company's shares fell by 2.4%.