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Global Stocks appeared Mixed as China Cut Interest Rates

by Carl Steward
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stocks market, cours bourses européennes rouge coronavirus covid-19 FTSE 100Global Stocks appeared Mixed as China Cut Interest Rates

Stocks worldwide appeared mixed as China decided to cut interest rates in order to support its struggling economy.

On Monday, U.S. markets remained closed for a public holiday, and global trading activity appears to be light. The Shanghai Composite Index rose 0.7%, and Japan’s Nikkei 225 increased 0.8%.

In the meantime, Hong Kong’s Hang Seng Index dropped 0.8%, while Korea’s Kospi Index fell 1.2%. The pan-continental Stoxx Europe 600 climbed 0.6%.

Head of the macro at Lombard Odier Investment Managers, Florian Ielpo, said that China’s economy and central-bank policy are key drivers of market sentiment. Mr. Ielpo also noted that China is on a very different path compared to the rest of the world. He added that it is a striking difference, and they are nervous about the situation in China right now.

Head of Asia macroeconomic research at Pictet Wealth Management, Dong Chen, said that Chinese authorities might step up monetary and fiscal support. Oil prices bounded down, with global benchmark Brent crude falling 0.5% to $85.76 a barrel.

Different estimates on the global stocks

Investors are preparing themselves for another big week of U.S. corporate earnings. They expect Goldman Sachs to report Tuesday and Bank of America and Morgan Stanley on Wednesday.

Procter & Gamble and UnitedHealth will post results on Wednesday, after American Airlines and Netflix on Thursday.

A market strategist at BNY Mellon Investment Management, Lale Akoner, said banks would surprise the upside.

More broadly, wages will go higher with the energy costs so that overall inflation will pressure margins. Ms. Akoner said that this process would appear in earnings in 2022.

Unilever shares fell over 8% after the consumer-goods giant said it had approached Pfizer and GlaxoSmithKline about buying their joint venture. Its latest bid valued the unit at $68.5 billion. U.K.-listed GlaxoSmithKline shares climbed 3.7%.

Credit Suisse shares fell 1.7% after the bank’s chairman resigned.

The post Global Stocks appeared Mixed as China Cut Interest Rates appeared first on forexinsider24.com.

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