On the first day of trading this week, Asian stocks fell as the regional benchmark index are heading for its biggest loss in more than three weeks. On the other hand, European stocks were little changed before services-industry reports in the euro area and the U.S. European stocks were also affected by the data coming from China that shows non-manufacturing gauge fell to some extent.
Like European stocks, the U.S. index futures were little changed. Some major losers in the US trade were Sanofi which declined 0.9 percent after JPMorgan Chase & Co. lowered its recommendation on the shares. However, Centamin Plc gained 5.4 percent as the company was able to rack in higher production which is far better than what was expected earlier.
On unsustainable trading day the Stoxx Europe 600 Index dropped less than 0.1 percent to 327.48 at 8:06 a.m. in London. A similar pattern was seen in Standard & Poor’s 500 Index futures wherein it declined less than 0.1 percent. Following the patterns in the US and European trade, the MSCI Asia Pacific Index lost 0.8 percent.
On the other hand, the Stoxx 600 which rallied 17 percent last year is expected to keep its pace as central banks around the world are keeping interest rates low. It will further gain strength as there is better-than-forecast data in the US. It is signaling that the US economy is on the recovery path and may further strengthen this year.
In European markets, the benchmark measure fell less than 0.1 percent last week. On the other hand, Asian stocks too are not faring well today as some major Japanese companies are on losing streak. The major loser in today’s trading is SoftBank Corp., a Japanese mobile phone operator, lost 3.5 percent after the rating of Sprint Corp., which SoftBank acquired last year, was cut at Cowen and Company.
There was a major decline in indexes and till the report coming; the MSCI Asia Pacific Index slipped 0.8 percent to 139.23 as of 3:48 p.m. in Tokyo. A major chunk of stocks from energy and telecommunication-services company providers fell to great extent. A similar pattern was seen in retail sector. A major retail company Fast Retailing Co. fell to great extent today.
The market observers who have keen eye on Asian stock market admit that Fast Retailing Co., Asia’s biggest apparel chain, lost 5.8 percent in Tokyo. A similar pattern was seen in China Railway Group Ltd whose stocks slumped 3.3 percent in Hong Kong.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org
By Deepak Tiwari October 31, 10:43 GMT
By Deepak Tiwari October 31, 9:18 GMT
By Jonathan Millet October 31, 9:17 GMT
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