In yesterday’s trading, European stocks were little changed. This happened as a report on hiring by U.S. companies is about to come. The data will have a great impact on the decision that the Federal Reserve is going to take regarding financial stimulus. If it is on the positive side, as the Fed is expected to taper the quantum of stimulus.
On a dismal trading day, the Stoxx 600 declined less than 0.1 percent to 329.28 at 8:24 a.m. in London. A similar pattern was followed by Standard & Poor’s 500 Index wherein futures slipped less than 0.1 percent. On the other hand, the MSCI Asia Pacific Index rallied 0.9 percent, following a four-day decline.
Major Losers and Gainers
The major gainer in yesterday’s trade was SAP AG which added 1.1 percent. The gain was attributed to the fact that UBS AG recommended that investors buy the shares. However, Kion Group AG was not so much on the track as it slid 2.8 percent. The company’s stocks fell as its biggest shareholder put a 10.8 percent stake in the forklift maker on sale.
On the other hand, Asian shares got a hand up on Wednesday i.e. today. This happened as strong trading data is expected from the U.S. growth. This is expected to lessen sovereign strains in Europe which could lift stocks to great extent. After holding on the losing streak this week and the last week, Japan’s Nikkei again stood out with a rise of 1.2%.
Asian Market Slightly Up
Except for Japan, most of the regional markets in Asia remained out of favor as funds flock to assets in the western world. Whereas the dollar climbed against the yen after the U.S. trade deficit shrank to its lowest level in four years, the lower growth in the Chinese manufacturing sector is a major concern for investors and traders.
A slight growth was seen in MSCI’s all-country world stock index. A similar pattern was seen in the Dow and the S&P 500 which rose 0.6%. This gave momentum to Asian markets today which opened on the bright side and gave hope to traders after a dismal week. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.4%.
The latest reports coming from the stock markets of Singapore, India and Taiwan show that there is slight upward movement. However, the Asian market is not yet able to get what European indices got i.e. it hit five-and-a-half-year highs on Tuesday led by a near 3% jump in Spain.
To contact the reporter of this story: Jonathan Millet at email@example.com