This builds on the gains from yesterday, as European equities are still clawing back the deep losses sustained on Tuesday. The more positive mood here also in part reflects some catch up to the surge in US equities – which closed at the highs.
US futures are looking rather flattish so far to start the session, while Treasury yields are a touch lower with 10-year yields down 2 bps to 1.535%.
The Nikkei closes pretty much flat (+0.01%) on the day at 29,685.37 with the Topix seen down 0.2% to 1,956.56 at the close today. The sentiment mirrors a more tepid mood in US futures, though Chinese equities are faring well in Asian trading.
The Hang Seng is up 0.6% while the Shanghai Composite is seen up 1.3% as investors take comfort in easing worries surrounding Huarong’s debt problems.
S&P 500 futures are seen down 0.1%, Dow futures down 0.3%, while Nasdaq futures are up 0.1% in a bit of a mixed performance ahead of European trading.
The German Dax broke higher today and in the process moved to a new all time high at 15473.83. The price of the index had been waffling up and down over the last 8 trading days in a non-trending market before breaking higher and running to the upside.
France’s CAC also moved to new highs for the week and trades at the highest level since December 2000. The high price reached 6299.56. The new high close is at 6287.07.
A look at the final numbers shows:
German DAX, +1.34%
Francis CAC, +0.85%
UKs FTSE 100, +0.5%
Spain’s Ibex +0.5%
Italy’s FTSE MIB, +0.88%
For the week, the France’s CAC led the way with a gain of 1.91%. The final numbers for the week show:
The Topix is also seen up 0.1% as stocks in Asia are buoyed by the gains in Wall Street overnight, though the gains in Japan are relatively mild. Elsewhere, China’s record GDP data, though failing to impress, is enough to keep sentiment buoyed as well.
Both the Hang Seng and Shanghai Composite indices are up 0.9% currently.
Elsewhere, US futures are pulling back a little after the gains yesterday amid some stabilisation in Treasury yields. S&P 500 futures are seen down 0.1%.
Japanese stocks are still plagued by some worries surrounding the virus situation in the country, as infections are surging in recent weeks. Elsewhere, the Hang Seng is up 1.4% while the Shanghai Composite is up 0.7% currently.
Overall, equities sentiment is rather buoyed from the shove lower in yields yesterday. The S&P 500 closed 0.3% higher and the Nasdaq closed 1% higher, helping to buoy sentiment in Asia and as we look towards European morning trade today.
The major European indices are ending the day with mixed results. A look at the provisional closes showing:
German Dax, +0.15%
Frances CAC, +0.4%
UK’s FTSE 100, unchanged
Spain’s Ibex, unchanged
Italy’s FTSE MIB, +0.5%
In other markets as London/European traders look to exit for the day:
Spot gold his trading up $11 or 0.64% at $1743.81.
Spot silver is trading up $0.54 or 2.18% $25.35
WTI crude oil futures are trading up $0.59 or 0.99% at $60.29
Bitcoin is soaring by $3650 or 6.1% at $63,665. Coinbase will be going public tomorrow and that has helped to push of bitcoin in anticipation of a stellar IPO.
In the US debt market, yields are mostly lower ahead of the 30 year bond auction. The 30 year yield is marginally higher ahead of that auction.
In the forex market, the major currencies have scrunched together with the EUR holding onto a slim lead as the strongest of the majors. The GBP is the weakest (followed by the USD). However, all the currencies are close together indicative of a market that is struggling with directional bias.