Asian Mixed In Post-Holiday Trading, European Stocks Move Higher, Trade Talks Still In Focus

More than 66% of the S&P 500 have reported so far for the fourth quarter and the results are better than expected.
Thomas Hughes
Wall street financial nyc, business finance.

China Moves Higher On The First Trading Day Of The Year Of The Pig

Asian markets were mixed in Monday trading as markets wake up from last week’s Lunar New Year Holiday. Chinese markets led with gains greater than 1.25% and were followed by a less-robust 0.71% for the Hong Kong Heng Seng. The Australian ASX and Korean Kospi both posted moved less than 0.20% although one was up (the Kospi) and one was down (the ASX). Japan was closed for their Founder’s Day Celebration marking the anniversary of Japan as a nation.

In stock news, shares of Hong Kong-listed Tencent rose nearly 2.0% in Monday trading as tech led gains.

Market focus this week will be on the US/China trade talks scheduled for later this week. The talks are in Beijing and follow-up on a meeting held two weeks ago in Washington. The US is sending Secretary of the Treasury Steve Mnuchin and Lead Trade Negotiator Robert Lighthizer to the latest round of talks in effort to smooth out hurdles to reaching a trade deal. Last week US officials let it be known there was no Trump/Xi meeting on the table yet.

European Markets Move Higher On Trade Optimism

European indices moved higher in early Monday trading despite the cautionary tone from Washington. Traders in the region believe China and the US are on course to reach a trade deal even if the timing remains uncertain. Both nations are at risk of economic recession if a deal is not reached so incentivized to make concessions.

The French CAC led the gains with an advance of 1.10% as banks move solidly higher throughout the region. The DAX posted the second-largest advance in midmorning, about 1.0%, while the UK FTSE 100 came in at a slightly tepid 0.75%. Banks across the EU got a boost from good news in Italy. The EU just issued new capital requirements for the Italian banks and the news is good. Shares of most banks were up at least 1.0% with those in Italy advancing the most.

US Futures Move Higher

US futures move higher, pointing to a positive opening for US markets, on trade optimism despite a growing chance there will be another government shutdown. A key US Senator, Richard Shelby, has told reporters that the talks are stalled on immigration issues, the very issues that led to the longest shutdown in US history.

In trade news, there is not a lot of expectation on this week’s meeting, not anymore, but the market is still looking for positive development. Last week’s remarks from Larry Kudlow put the market back in its place but did not alter the outlook that trade relations are on the upswing.

In earnings news, more than 66% of the S&P 500 have reported so far for the fourth quarter and the results are better than expected. The problem is the outlook for earnings growth continues to suffer under the weight of trade tariffs and that will keep stocks under pressure in the near-term. There is not much data due out this week and what there is may be delayed because of the last government shutdown.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US