European Markets Lead for Bigger Open; Stocks and Fears
European stocks should open on Monday, Although the global economy is dominated by market sentiment. The FTSE index is 34 points higher at 7,422; DAX 129 at 14,099. CAC 40 with 51 points at 6,312. FTSE MIB 190 points up 23,899. After an unstable trading week, higher openness is expected in Europe after the regional markets closed on Friday. Despite the high closing, European stocks still recorded a negative week. U.S. stocks fell on Friday. This extended the loss earlier in the week and put the S&P 500 bear on the edge of the market.
U.S. stock futures have risen in overnight trading since Sunday. The Dow fell for the 8th week amid broad market sales. Shares in the Asia-Pacific region were mixed on Monday; Global concern was felt among investors.
The World Economic Forum kicks off this week in Davos, bringing together political and business leaders worldwide. This year’s summit comes several years after the COVID-19 pandemic, also against the background of the Russian invasion of Ukraine, which is likely to be at the top of the agenda.
Why China Stocks Sink
Chinese stocks fell on Monday. Beijing has announced the highest number of cases recorded during the current explosion of COVID-19. The CSI300 index fell 1.1% to 4.034.00, while the Shanghai Composite Index lost 0.5% to 3.131.85. The Hang Seng Index dropped 1.9% to 20,317.16. Hong Kong, China Enterprises Index, lost 2.2% to 6.966.35. There has been some resistance since the Shanghai Composite benchmark restored the recent axis by more than 200 points.
Meanwhile, the Chinese capital announced 99 new infections on Sunday. Real estate developers fell 3%. Travel agencies and spirits fell by about 2% each, while new energy fell by 1.5%. Analysts estimate that there are still some challenges in the market, and more positive fundamental catalysts are needed for further profits. Chinese regulators said on Friday that they would simplify issuing capital and bonds by companies affected by the pandemic. Brokers and fund managers were also urged to move more money to areas and sectors affected by the virus.
Broader Asian stocks also came under pressure. Constant concerns about inflation and rising interest rates have strengthened the global economic outlook. The technical giants listed in Hong Kong lost more than 3%. Alibaba fell 4.6% to become the most significant drop in the Hang Seng index. Stocks of China Hongqiao Group and Orient Overseas jumped more than 6%.
Japan’s Nikkei
The Nikkei rose to 27,047.47 shortly after opening the open, just 25 points away from a one-month peak; However, it disappeared. The morning session ended 0.5% higher, at 26,872.01, near the day’s lowest level. Topix increased 0.6% to 1.888.67. According to a market participant in the domestic securities company, without new trademarks, it isn’t easy to raise prices. Most investors want to see how Wall Street starts on Sunday. The Nikkei is going to have four sessions due to growing concerns.
The S&P 500 E-mini futures were up about 0.8% on Monday; However, after a volatile day of U.S. stocks on Friday, the benchmark ended the session. Nikkei’s 141 shares rose 141 from the index; 78 fell, and six remained unchanged.
The Financials forecast a cross-sectional profit of 2.08%. Tokyo Marine Holdings jumped 8.08% after its earnings forecast rose above analysts. The second and third best performers were Peers Sompo Holdings and MS&D Insurance Group Holdings; they grew by 8.01% and 6.27%, respectively. Energy and basic materials were the only Nikkei subsector that fell; The first retreated 0.42% and the second one 0.14%.
