Dow Jones, the U.S. stock index embracing the USA’s 30 biggest companies, has rallied fro he first time since August 19th. At this point, it is up by 619 points or 3,95% (16185,51 points). By the way, this is the biggest daily gain since 2001, Masterforex-V Academy reports.
As for the biggest gainers within the list of the mentioned 30 companies, these are Apple, Google and Amazon. Other major American stock indexes known as S&P 500 and NASDAQ have already gained 3,9% and 4,24% respectively.
Yesterday, the U.S. Department of Trade reported about an increase in the durable goods orders. A day before that, Dow Jones set an anti-record by plunging by more than 200 points a day for 4 days for the first time in 119 years. All in all, the index lost 1,682.29 over the 4 trading sessions.
At the same time, today’s trading session in China started with a Shanghai Composite rally. The index has already covered yesterday’s losses. This followed the People’s Bank of China’s decision to cut deposit and interest rates earlier this week.
In particular, Shanghai Composite Index gained 1,73% and reached 2978,03 points while Shenzhen Composite Index advanced by 1,64% all the way up to 1723,54 points.
China Starts Arresting Banker and Journalists
The Chinese authorities have been trying to control the local market and everything related to it over the last few weeks. All of that resulted in a series of arrests. This may confirm the rumors that the local authorities have lost control of the situation.
It should be reminded that the Chinese stock market suspended its growth and started plunging in June 2015. As a result, China Securities Finance Corp. (CSFC) got almost 1 trillion Renminbi to back the market.
On June 20th, a Chinese edition called Caijing dared suppose that CSFC’s exit from the local stock market triggered a collapse of Shanghai Composite. This triggered a crash in the Chinese futures market. Shortly after that, CSFC took urgent steps while calling Caijing’s supposition a rumor. The author of the article was arrested for spreading fake information on futures and stock trading. All of that is happening amid an unprecedented stock market plunge seen in China and worldwide. The situation seen at the beginning of the week was even called “Black Monday”. Stay tuned as we keep monitoring the situation…
