According to the news report by Bloomberg, international markets starting the trading week on a backfoot, with Asian stocks declining as markets opened. However, as the day progressed, things got better and Asian markets closed higher.
Stocks in Europe also rose and US stocks futures also showed gains during the trading day. This week could prove to be key to overall global outlook. Added to gains in the stock market, the dollar also gained in strength for the 8th day in a row.
The STOXX Europe 600 Index rose, as did futures contracts on the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite Index. The futures contracts of the US equities had seen declines earlier in the day, but were able to reverse them as the trading day progressed.
The stock market in China started shakily, but gained as the day progressed after the country’s markets opened after a week-long holiday for the Chinese New Year. The markets in China have re-opened just before the scheduled high-level trade talks in Beijing between American Treasury Secretary Steven Mnuchin, US Trade Representative Robert Lighthizer and the Chinese Vice Premier Liu He.
With the exception of a strong stock market performance in China, the rest of the Asian markets gave a mixed performance today. Japanese markets were closed today due to a national holiday.
The Yields on Treasuries as well as base European bonds gained. The British pound remained lower after data revealed that the economy in the UK shrank unexpectedly in December.
Trade concerns are increasing as investors are evaluating the possibility of a deal between the world’s two largest economies, the UK and China, before the March 1 deadline that will lead to increased tariffs. More frequent warnings are coming in that this continued dispute between the two countries is impacting global economic growth and hurting profits in the corporate sector.
The US government is also looking at another shutdown as negotiations between the President and the Congress failed to reach an agreement about the border wall issue.
In other sectors, the West Texas Intermediate, the American benchmark for crude oil, fell towards $52 per barrel. Gold also looked to be heading for its first decline in more than 3 days. The Swiss Franc also dropped in value by 1% at the beginning of the trading day in Asia.
Overall, in international markets, the STOXX Europe 600 Index was up 0.8%, the S&P 500 Index futures contracts gained by 0.3%, the Shanghai Composite Index went up by 1.4% (which is the highest it has been in nearly 10 weeks), and the developed countries’ MSCI World Index gained by 0.1%.
In currencies, the Bloomberg Dollar Index went up by 0.2%, the Euro lost ground by 0.1% to trade at $1.131, the Swiss Franc dropped by 0.2% to trade at $1.0029, the Pound dropped by 0.1% and the Japanese Yen fell 0.4%.
In commodities, the price of gold went down by 0.5% to trade at $1,307.30 per ounce. The West Texas Intermediate benchmark dropped by 0.7% to trade at $52.33 per barrel. The price of LME nickel went up by 0.2% to trade at $12,595 a metric ton, and the price of LME copper went down by 0.8% to trade at $6,162.50 a metric ton.
In key events for the week, the corporate earnings season continues with reports expected from companies such as Coca-Cola, Nestle, Nissan, Nvidia, Michelin, Cisco as well as Credit Suisse.
US consumer prices date is expected to be released on Wednesday.