LONDON, U.K. – Euro stocks increases with the US futures as the trading session in Asia started with mixed sentiments as market players continue to look out for the signs on the progress of the long-standing US-China trade negotiations.
The Stoxx Europe 600 index gains were largely powered by automaker shares, which was boosted by the numbers that showed the car sales in Europe increased during October. The S&P 500 also gained significantly, which signals an underlying measure that the index is going for another fifth record.
In the Asian stock market, the equities in Shanghai climbed while it dropped in Tokyo. The Hang Seng in Hong Kong also increased amid the continued political unrest and protests in the city, further taking back the 4.8% drop it had last trading week.
On the other hand, the European government bonds had conflicting sentiments, while pounds stick to its increased from Monday. Further, oil futures dipped during the second trading day.
Markets all over the world are hanging by a thread with expected sudden change depending on the trade developments after several months of the long-standing trade negotiations. One factor affecting the stocks was the 21% advance in the MSCI World Index this year, which has pushed the benchmark to a level high, its highest price to earnings ratio after three years.
According to a markets economist at Capital Economics, Simona Gambarini, there isn’t a lot of scope for the equities in the global market to receive any more boost from the trade negotiations more than what is being reported.
In stocks, the benchmark Stoxx Europe 600 Index came up with a 0.5% increase as of 9:24 am London time. Italy’s FTSE MIB index also rose by 0.8%. Hong Kong’s benchmark Hang Seng Index rose up to 1.5%, and the futures on the S&P 500 jumped to about 0.2%.
In currencies, Sterling rose by 0.1%, moving up to 0.8544 per Euro. The Bloomberg Dollar Spot Index had a modest change, while the Japanese yen dropped to 0.1%, going down to 108.78 per dollar.
On Bonds, the 10-year yield for Italy dipped one basis point, bringing it to 1.202%, while Germany’s gained one basis point, bringing it to -0.33%. The 10-year yield on Treasuries also increased by one basis point, leading it to 1.82%, with Australia’s dipped four basis points, dropping it to 1.1325%.
On commodities, gold dropped 0.3%, valuing it to $1,467.47 per ounce, while Iron gained 1%, leading it to $84.15 per metric ton.