The performance of major equities markets across the globe this week was positive, driven by the number of development that suppressed the weak sentiment of the previous week, created by the ravaging effect of a new virus from China, Coronavirus. Top among this development was China’s announcement of a 50% slash in tariffs imposed on some of the goods from the U.S. from10% and 5% to 5% and 2.5% respectively as the two world powers inch closer to a trade truce. This move by China which is coming amidst rising economic cost (to China) over the outbreak of the Coronavirus epidemic served as an olive branch on investors’ sentiment, especially in the Asian markets.
In other development, the Republican-dominated Senate in the U.S. acquitted the embattled president, Donald Trump, of allegations of Abuse of Power and
Obstruction of Congress filled against him by the Democrat-led House of
Representatives, six months after a whistleblower revelation sparked an investigation on the president.
Consequent to the above, leading equity market performance indicators in the
The U.S., the DJIA, S&P 500, and Nasdaq all gained 3.25%, 3.43%, and 4.42% w/w respectively. In Europe, the UK FTSE 100, German DAX, and France CAC 40
gained 2.40%, 4.06%, and 3.64% w/w respective.
In Asia, China’s Shanghai Composite Index rallied from Monday’s massive sell
pressure over the outbreak of the Coronavirus to gain 1.03% in the last four
trading days, while Japan’s Nikkei 225 and India S&P BSE gained 2.68% and 1.03% w/w respectively
However, there was mixed sentiment across the major African market. While South Africa FTSE/JSE and Egypt’s EGX gained 1.87%, and 1.34% respectively, the Nigerian bourse, on the other hand, lost 2.69% w/w.