Cheerful Global Sentiment Helped to Boost European Stocks
On Monday, European stocks were trading marginally higher, reflecting broadly positive trade in global markets overnight. Notably, the pan-European Stoxx 600 index was trading 0.1% higher with most sectors in positive territory apart from banks, insurance, healthcare, telecoms, travel and leisure. As a reminder, U.K. markets are closed for a public holiday.
A positive start to the trading week in the days of the month reflects sentiment elsewhere, with U.S. stock futures steady in overnight trading on Sunday. Stocks in Asia-Pacific mostly strengthened their positions on Monday.
It is expected that U.S. stocks could remain range-bound until the release of August’s jobs report on Friday. The S&P 500, as well as the Nasdaq Composite, closed at all-time highs on Friday. Fed Chair Jerome Powell’s speech helped to improve market sentiment.
Stocks in Asia-Pacific
Stocks in Asia-Pacific mostly strengthened their positions, with Australian stocks recovering from an earlier drop as Covid cases in the country spike.
Australia’s S&P/ASX 200 gained 0.22% to close at 7,504.50. The state of New South Wales reported a record one-day rise in new Covid-19 infections on Monday
In Japan, the Nikkei 225 gained 0.54% to end its trading day at 27,789.29. The Topix index rose 1.11% to 1,950.15. In South Korea, the Kospi added 0.33% to 3,144.19.
Mainland Chinese stocks were mixed on Monday. The Shanghai composite gained 0.17% to 3,528.15. The Shenzhen component fell slightly to 14,423.37. In Hong Kong, the Hang Seng index advanced 0.52% to 25,539.54.
Investors in Asia-Pacific are waiting for the earnings report of Chinese food delivery giant Meituan. Hong Kong-listed shares of the company rose 1.51% ahead of the earnings release. Shares of tech giants were mixed: Tencent dropped 0.13% while Alibaba rose 1.48%. The Hang Seng Tech index gained 1.09% to 6,391.17.
In other Chinese tech developments, China is reportedly is looking at new rules that would restrict domestic firms from going public in the U.S. Regulators in China are specifically targeting tech firms with user-related data.
The country already took certain measures against various industries while tightening restrictions on cross-border data flows and security. The government already took measures against some of China’s most powerful companies including Didi, Alibaba, and Tencent.
The Securities and Exchange Commission tightened its control of the local companies seeking U.S. initial public offerings. The regulator will require additional disclosures about the company structure as well as any risk of future actions of the Chinese government.
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