Downward Asian stock markets & signs of increase of most European markets
June 27, 2014 7:41 am
European equity markets were higher Friday, attempting to shrug off the weakness in Asia overnight as investors focus on upcoming economic data in view of the lower than what was expected of US consumer confidence.
The Stoxx Europe 600 Index was broadly flat 341.86 while London’s FTSE 100 is up 0.2% and Frankfurt’s Xetra DAX trades flat. US stock futures retreated with the S&P500 front month futures contract off 0.2% while the MSCI Asia Pacific Index lost 0.3%.
In Europe, markets are watching for economic data before potentially making bold moves – we have growth numbers from the UK, business confidence numbers for Italy and the euro zone as well as Spanish and German inflation data.
Out already, French GDP data showed the economy failed to grow in the first quarter, weighed down by a fall in consumer spending and investment by non-financial companies. That said, consumer spending in France was better than expected – up 1% which is much better than expectations of around 0.4%, thanks mostly to a jump in energy expenditure.
Elsewhere, oil prices eased a tad following recent strength with NYMEX crude trading at $105.59 a barrel, down $0.25. August Brent crude on London’s ICE Futures exchange fell $0.17 to $113.04 a barrel.
Violence in Iraq has been a big source of concern for oil markets on supply disruption fears but markets are also now of the view that there seems to be greater effort by the Iraqi forces to protect oil pipelines in the south of the country.
Overnight in Asia, stocks ended the week on a downward note. Hong Kong’s Hang Seng is down 0.3% while the Shanghai Composite has lost 0.4% and Sydney’s S&P/ASX 200 is down 0.3%.
Tokyo’s Nikkei 225 average is down 1.6% after the latest reading on consumer price inflation which was up 3.4% year-on-year in May – the fastest pace since 1982 – rising from 3.2% in the prior month, due to the impact of April’s rise in the national sales tax rate.
At the same time, there was a rebound in Japanese retail sales which grew 4.6% in May from April, a month in which retail sales contracted because of the sales tax increase.
Looking ahead, eyes are likely to be on US data with the University of Michigan index of sentiment which according to Bloomberg might come in at 82, compared with the earlier estimate of 81.2 and a reading of 81.9 in May.
European equity markets were higher Friday, attempting to shrug off the weakness in Asia overnight as investors focus on upcoming economic data in view of the lower than what was expected of US consumer confidence.
The Stoxx Europe 600 Index was broadly flat 341.86 while London’s FTSE 100 is up 0.2% and Frankfurt’s Xetra DAX trades flat. US stock futures retreated with the S&P500 front month futures contract off 0.2% while the MSCI Asia Pacific Index lost 0.3%.
In Europe, markets are watching for economic data before potentially making bold moves – we have growth numbers from the UK, business confidence numbers for Italy and the euro zone as well as Spanish and German inflation data.
Out already, French GDP data showed the economy failed to grow in the first quarter, weighed down by a fall in consumer spending and investment by non-financial companies. That said, consumer spending in France was better than expected – up 1% which is much better than expectations of around 0.4%, thanks mostly to a jump in energy expenditure.
Elsewhere, oil prices eased a tad following recent strength with NYMEX crude trading at $105.59 a barrel, down $0.25. August Brent crude on London’s ICE Futures exchange fell $0.17 to $113.04 a barrel.
Violence in Iraq has been a big source of concern for oil markets on supply disruption fears but markets are also now of the view that there seems to be greater effort by the Iraqi forces to protect oil pipelines in the south of the country.
Overnight in Asia, stocks ended the week on a downward note. Hong Kong’s Hang Seng is down 0.3% while the Shanghai Composite has lost 0.4% and Sydney’s S&P/ASX 200 is down 0.3%.
Tokyo’s Nikkei 225 average is down 1.6% after the latest reading on consumer price inflation which was up 3.4% year-on-year in May – the fastest pace since 1982 – rising from 3.2% in the prior month, due to the impact of April’s rise in the national sales tax rate.
At the same time, there was a rebound in Japanese retail sales which grew 4.6% in May from April, a month in which retail sales contracted because of the sales tax increase.
Looking ahead, eyes are likely to be on US data with the University of Michigan index of sentiment which according to Bloomberg might come in at 82, compared with the earlier estimate of 81.2 and a reading of 81.9 in May.
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