According to the news report by Bloomberg, stocks in the international market are seeing modest gains at the start of the week.
Asian stocks went up and the US Dollar also gained in strength thanks to the solid US jobs report on Friday as well as positive comments from the US government about the ongoing trade talks with China. However, due to the lunar new year holiday, trading has been muted in the region.
The stock market in Japan did well, partly due to a weakening Yen, which continue to lose value from Friday after the US produced a strong jobs report.
Shares in Hong Kong and Australia also rose, but European stocks and American futures stayed mostly the same.
During the weekend, American President Donald Trump stated in an interview with CBS that trade discussions with China were doing well. He also sounded confident that the US and North Korea would be able to reach an agreement.
Friday saw US stocks close the week marginally higher thanks to a strong jobs report and PMI manufacturing data. These pieces of good news took away the gloom from the disappointing sales guidance from Amazon.com Inc.
Treasury yields also extended their gains today, riding on the good news of Friday.
While last week was extremely busy for the markets, with the trade talks between the US and China being held in Washington, the dovish stance adopted by the Federal Reserve and data about jobs and manufacturing, this week is expected to be much more muted.
Asia will see very little trading, especially China, where the markets will be closed all week for the Chinese New Year celebrations. Other markets in the region will also be shut for a number of days this week. Thus, the expectation is that investors will once again turn to the corporate earnings reports to see how markets move.
Templeton Global Equities’ portfolio manager Peter Wilmshurst states that if there is some kind of indication that global economic growth is stabilizing, then investors will show more faith in corporate earnings. Wilmshurst also feels that last year’s market decline has left the valuation of numerous stocks across the globe looking interesting – especially those outside of the United States.
In South America, Venezuela saw protests in the streets, and developments in the country are being watched closely by oil traders. This is because of the key role that Venezuela plays in global oil exports.
In stock markets across the world, the Japanese Topix Index has gone up by 1.1%, the Australian S&P/ASX 200 Index has gone up by 0.2%, the Hang Seng Index in Hong Kong has gained 0.2% in trading today and the S&P 500 Futures Index is trading flat.
In currencies, the Japanese Yen is down 0.2% to trade at ¥109.76 to the dollar. The Bloomberg Dollar Spot Index has gained 0.2%, the Euro has dropped to $1.1445 and the British Pound stays the same at $1.3073.
In commodities, the price of crude oil on the American benchmark West Texas Intermediate has held steady at $55.2 per barrel after jumping up by 2.7% on Friday. The price of gold is now $1314.04 per ounce after the precious metal dropped by 0.3%.
Asian markets such as China, Hong Kong, Taiwan, Singapore, Malaysia, South Korea and Vietnam are either closed the entire week or part of the week to commemorate the start of the new year – the Year of the Pig.
The earnings season continues this week with Alphabet’s Google, Hasbro, Twitter, Philip Morris, Disney, Ryanair, BNP Paribas, SoftBank, MetLife, ING and Societe Generale reporting their performance.