European Stocks Drop Yesterday, the Trend Followed by the Asian Stock Market

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European Stocks Drop Yesterday, the Trend Followed by the Asian Stock Market
European Stocks Drop Yesterday, the Trend Followed by the Asian Stock Market

European Stocks Drop Yesterday, the Trend Followed by the Asian Stock Market

After better a trading day on Monday, European stock-index futures retreated to an extent and prompted the fall in the Stoxx Europe 600 Index. Investors believe that it happened due to the fact that they are weighing corporate earnings and awaited data that may show euro-area industrial output declining.

Whereas futures on the Euro Stoxx 50 Index (SX5E) expiring in December fell by 0.5 percent to 3,017, contracts on the U.K.’s FTSE 100 Index were also faring lower as they slid 0.4 percent. Similarly, there was no respite for Standard & Poor’s 500 Index futures that slipped marginally by 0.3 percent. The trend was followed by the MSCI Asia Pacific Index that lost 0.9 percent on a dismal trading day.

Asian Stock Traders Start with Caution

Following the last day’s trading in European stock markets, stocks in Asia fell to a one-month low; this according to market observers is happening as China’s leaders failed to outline specific measures that they are going to chart out to reduce the State dominance of the economy after they met this week.

Reportedly, the central committee of the Communist Party of China concluded the meeting and came up with the statement that the role of markets would be elevated in the nation’s economic development subsequently. Apart from Chinese decision on the market’s role, investors are also watching U.S. economic policy after the employment data release.

Market observers believe that the Fed may start tapering stimulus from next month onwards as the country has got a better report on the employment front. In the situation the Fed decides to cut its monthly pace of bond buying to $70 billion from $85 billion, it may send worrying signals to investors.

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Whereas China’s Shanghai Composite fell 0.8 percent to 2,109.68, there was little to protect Hong Kong’s Hang Seng that finally sank 1.3 percent to 22,605.30. The trend was followed by Tokyo’s Nikkei which fell by 0.4 percent to 14,537.43. Similar trend was seen in South Korea’s Kospi that lost 1.3 percent to 1,969.39.

Stocks in Australia’s S&P/ASX 200 fell 1.5 percent to 5,311.40. On bright side, stocks in the Indian market are faring better as the BSE index is up 0.13 percent and the NSE index 0.05 percent

Higher; the upward movement is attributed to better performance by Sun Pharma. The government bonds in India, the benchmark 10-year bond are yielding up 6 basis points at 9.11 percent after retail inflation data came in double digits, above market expectations yesterday.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com