A softer day for Asian equities
Stocks in Asia are largely following the mood from Wall Street yesterday, as stimulus talks get dragged on again and hopes for a pre-election deal continue to fade. US futures being marked lower by ~0.5% also isn’t really helping with sentiment so far today.
The Hang Seng is seen closer to flat levels, erasing some of its earlier losses while the Shanghai Composite is down by 0.6% but also off lows seen earlier in the session.
In the major currencies space, the more cautious mood is seeing the dollar keep a slight advance across the board as it retraces some of the losses from yesterday.
The more interesting action in the bond market yesterday is meeting a bit of a check, with 10-year Treasury yields seen lower by 1.5 bps to 0.807% currently.
Provisional closes for the major European indices
The European major indices are ending the session with mixed results. The German DAX fell -0.9%. The Spain’s Ibex increased by 1.0%. The provisional closes are showing:
- German DAX -0.9%
- France’s CAC, -0.1%
- UK FTSE 100, +0.15%
- Spain’s Ibex, +1.0%
- Italy’s FTSE MIB, +0.6%
German DAX lower.
The major European indices are ending the day with mixed results to start the trading week. The German DAX and UK FTSE are lower on the day. The other indices are marginally higher.
A snapshot of the provisional closes are showing:
- German DAX , -0.4%
- France’s CAC, +0.1%
- UK FTSE 100, -0.4%
- Spain’s Ibex, +0.15%
- Italy’s FTSE MIB, -0.1%
In the European debt market, the benchmark 10 year yields are ending with mixed results. UK and German yields are down marginally while the other major countries are showing gains. Investors are shunning Italian 10 year debt with a rise of 6.5 basis points on the day.
Asian equities mixed after Chinese Q3 GDP data earlier
Japanese stocks are tracking US futures more closely, as the Nikkei closes up by over 1% to post its strongest daily close since February. S&P 500 futures are seen up by 0.6% on stimulus hopes so that is feeding into the more positive risk vibes for now.
The close also sees the Nikkei erase its losses for the year, now up by 0.06% in 2020.
Elsewhere, the Hang Seng is up by 0.6% but mainland Chinese equities are lower with the Shanghai Composite down 0.5% following China Q3 growth numbers earlier.
The risk mood is tilted slightly towards the more optimistic side ahead of European trading but hopes for a pre-election stimulus is almost certainly going to fall flat and that might temper with the risk mood in the coming sessions, so just be mindful of that.
A bit of catch-up play in early trades
- German DAX futures +0.6%
- UK FTSE futures +0.8%
- Spanish IBEX futures +0.4%
European indices close the day near the lows yesterday, down by over 2% across the board, missing out on the late recovery in US equities towards the latter stages.
Hence, the gains here are largely due to some catch-up play and belies the more tepid and cautious risk mood to kick start the session.
US futures aren’t doing a whole lot, with S&P 500 and Nasdaq futures keeping at flat levels at the moment. Major currencies are also mostly little change besides some mild strength in the yen, with AUD/USD seen a little weaker under its 100-day moving average.
A mixed day for Asian equities
Japanese stocks slumped to close the week, following the softer mood in Wall Street yesterday as US futures also keep more tepid in trading so far today.
But the Hang Seng is up by 1%, recouping early losses as Alibaba shares rebound strongly in anticipation of the Ant Group IPO, while Chinese equities keep more flat.
The overall risk mood remains more tepid and cautious, after having seen the strong wave of risk aversion early on yesterday countered by a late recovery in US stocks.
USD/JPY is keeping lower around 105.20-25 for the time being though but large expiries seen at 105.00 may well keep price action stuck ahead of North American trading.
Concerns about Covid slowdown hurt European shares
The European major indices are ending the day sharply lower on concerns about a Covid slowdown.
The provisional closes are showing:
- German DAX, -2.5%
- France’s CAC, -2.1%
- UK’s FTSE 100, -1.8%
- Spain’s Ibex, -1.4%
- Italy’s FTSE MIB, -2.7%