Stock update

Asian and European stock markets rose on Monday, breaking the pessimistic performance of last week before the central bank may hint at how and when it will cut monetary support.

The Stoxx 600 Index, Frankfurt’s Dax Index, and Paris’s Cac 40 Index rose 0.3% shortly after the opening of the market across the region, as did the UK’s FTSE 100 Index. In Asia, Hong Kong’s Hang Seng Index rose 1%, while the Nikkei 225 Index rose 1.8%.

But the rebound still keeps the key index below the level at the beginning of last week, after concerns about the potential global impact of the Coronavirus Delta variant Turbulence Transactions.

Anthony Collard, managing director of JP Morgan Private Bank, said of the rally: “I don’t think market behavior tells us anything new is happening.” “To some extent, this It’s a kind of mean reversion.”

Oil prices rose last week due to weak economic data. The global benchmark Brent crude oil price rose 2.4% to US$66.72 per barrel, while the price of West Texas Intermediate crude oil rose 2.3% to US$63.55 per barrel.

The European Purchasing Managers Index data-a broad indicator of the health of companies-portrays a mixed picture of the market as a whole. In the UK, the manufacturing and service industries are facing a sharp slowdown in growth, falling to their lowest level in six months.

Data from Australia also showed that the private sector in the country lost momentum in August due to the spread of the Delta variant and the resulting blockade.

In contrast, business activity in the Eurozone has grown at one of the fastest rates in the past 20 years, and employment continues to grow at the same rate as in June, setting a 21-year high.

Chris Williamson, Chief Business Economist at IHS Markit, said: “Although the spread of Delta variants has caused widespread problems throughout the region, suppressing demand and causing further supply problems, companies have benefited from the relaxation of virus control measures until the beginning of the pandemic. The lowest level ever.”

The big event for investors this week is the annual Central Bankers Symposium held in Jackson Hole, starting on Thursday. Disagreements within the Fed on the speed of reducing government debt purchases have increased the interest of the monetary policy makers meeting.

Since the impact of the coronavirus lockdown more than a year ago, the Fed’s $120 billion monthly asset purchase plan has been an important pillar of market recovery, injecting a lot of liquidity and support.The minutes of the Fed’s meeting released last Wednesday showed that most Fed officials It is believed that the withdrawal of the stimulus plan may begin later this year, leading to a decline in US stocks.

The futures market indicates that the US stock market may rise later in the day. Futures contracts tracking the S&P 500 index rose 0.2%, while futures contracts tracking the technology-focused Nasdaq 100 index rose 0.3%.


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