Whereas European stocks were down again, Indian stocks are slightly up. The decline in European stocks is attributed to the likely outcome of a Federal Reserve meeting starting today. On the other hand, US stock-index futures were little changed. The better prospects for Asian investors are up today as Asian shares advanced.
Indian Stocks up Today
Cutting the losses, the benchmark BSE index is up 0.52 percent today and the broader NSE index gained 0.58 percent higher. This is a cumulative impact of positive trade in Asian regional market as tracking higher Asian shares and on some value buying after five days of falls, stocks are up in India.
Regarding the government bonds, the benchmark 10-year bond yield was flat at 8.87 percent in thin trading ahead of the central bank’s policy review on Wednesday. The national currency of India, INR weakened further at 61.97/98 from previous close of 61.73/74.
European Stocks Drop
Discontinuing the passive trading, the Stoxx Europe 600 Index dropped 0.4 percent to 312.55 at 8:07 a.m. in London. Earlier, it had added 1.3 percent when euro-area manufacturing rose more than forecast; however, it could not maintain the pace and fell in front of the investors who are looking for better investment options.
the Stoxx Europe 600 Index, the Standard & Poor’s 500 Index futures also slipped 0.1 percent. However, the MSCI Asia Pacific Index was on positive road as it climbed 0.4 percent. Asian market is doing comparatively better today; however, the Shanghai Composite Index slid for a sixth day as it hit the dirt to cap the longest losing streak since June.
Chinese Stocks and Index
A major reason behind the fall of the Shanghai Composite Index is that the policy conference ended without economic growth targets. The problem has been further compounded by a private manufacturing index released yesterday, it declined unexpectedly and in consequence the measure dropped 0.4 percent. The fall is formed majorly by consumer companies.
China, the second largest economy in the world is also the largest foreign creditor to the U.S., boosted holdings by $10.7 billion, or 0.8 percent, to $1.304 trillion. There was unprecedented growth in the China’s Treasury holdings which neared a record in October as the U.S. maintained the bond-buying program, now that the U.S. is going to taper the stimulus, it is going to impact the Chinese economy to some extent.
To contact the reporter of this story: Jonathan Millet at email@example.com