Blog (MP) Global stock markets were mixed Friday with little economic news to move the final trading day of 2016.
In Europe, major indices were trading mildly lower during the late Asian hours. Oil prices seem to be dictating the movement of European markets as U.S. Oil Futures are back in $30 per barrel range. Crude Brent has also shed gains and is trading around the $31 level. Both the FTSE 100 and DAX are down by 0.39% and Euronext 100 was trading 0.27% lower at 856.58 today.
After a mixed reaction coming from Asian and European markets, it remains to be seen how U.S. markets will open today, considering extreme volatility this week so far. A rally in oil prices and strong corporate earnings kept the momentum up in U.S. markets yesterday. The Dow Jones Industrial Average inched closed 1.8% higher at 16.167.23 while S&P 500 Index too surged 1.41% to 1,903.63.
The Shanghai Composite Index fell 0.52% or 14.23 to 2,735.56. Today marks the second consecutive day of losses for the index as concerns of capital outflows from the region are firming up. According to global stock markets’ analysts, Beijing is now focusing on the yuan’s stability rather than driving up stock markets.
In the rest of Asia, Hong Kong’s Hang Seng rose 1.02% or 191.65 to 19,052.45. Japan’s Nikkei 25 closed 2.72% higher to 17.163.92. Up ahead in the week, investors will be paying attention to the monetary easing stance of the Bank of Japan, which kept rates unchanged at its last meeting.
KEEPING THE GLOBAL STOCK MARKETS SCORE
In early trading, Germany’s DAX rose 1.4 percent to 10,502.21 and France’s CAC-40 added 1.3 percent to 4,457.50. London’s FTSE 100 gained 0.9 percent to 6,873.44. On Tuesday, the DAX lost 0.3 percent and the CAC-40 and FTSE 100 both declined 0.2 percent. Wall Street looked set to gain for a second day, with the futures for the Standard & Poor’s 500 index up 0.2 percent and for the Dow Jones industrial average up 0.1 percent. On Tuesday, the Dow added 0.7 percent, the S&P advanced 0.6 percent and the Nasdaq composite gained 0.9 percent.
ASIA’S DAY: Tokyo’s Nikkei 225 index fell 1.3 percent to 16,456.40 and the Shanghai Composite Index lost 0.3 percent to 2,987.86. Hong Kong’s Hang Seng was unchanged at 23,560.61. Seoul’s Kospi added 0.9 percent to 2,017.94 and Sydney’s S&P-ASX 200 advanced 0.1 percent to 5,492.40. Benchmarks in New Zealand and the Philippines advanced while Singapore and Indonesia declined.
CURRENCIES: The dollar strengthened to 117.09 yen from 116.37 yen. The euro fell to $1.0511 from $1.0556.
OIL: Benchmark U.S. crude added 23 cents to $54.00 per barrel in New York. The contract fell 29 cents to close at $53.77 a barrel on Thursday. Brent crude used to price international oils, gained 23 cents to $57.08 a barrel in London.
THE TRUMP EFFECT: Investors sold gold and other assets they had bought as hedges against a possible victory by the Republican Trump, who has called for controls on trade and immigration. Markets also have been unnerved by Trump’s tax and economic plans. They were reassured by what some commentators saw as his poor showing in a televised debate with the Democrat Clinton, who is seen as more favorable to trade and continuity in U.S. economic policy.
“Wall Street can be seen repositioning toward the New Year and that could be the case for Asia as well amid moderate movements in major global stock markets,” said Jingyi Pan, a market strategist at IG in Singapore. “Pressure may nevertheless set in for markets that have underperformed lately in Asia.”