Europe is getting ready to smile. asia in red
Major European markets are trading positive for the fifth day in a row, with Europe already close to offsetting losses from last week’s series of losses.
Futures for the Euro Stoxx 50 rose 0.6%.
Strong corporate earnings, lower share prices and a calming environment in the UK, as well as a change in the mini-budget, create positive sentiment in the region’s stock markets.
But despite the optimism, “Analyst consensus could still be revised down,” US Bank Wealth Management analyst Terry Sandwen said in a note seen by Bloomberg.
“The evolution of inflation, more hawkish comments from the Fed and a slowdown in growth in the 2023 reporting season are key aspects that will contribute to investor sentiment,” he adds.
In Asia, trading was negative, with Hong Kong registering the largest decline in the region. This is despite territory leader John Lee giving a speech outlining new measures to cut furniture taxes and visa restrictions.
China’s anti-Covid-0 policy continues to weigh on sentiment as the current Communist Party convention gives investors little hope of possible relief.
In the rest of the Chinese-owned markets, the tech Hang Seng lost 1%, while the Shanghai one retreated 0.5%. In South Korea, the Kospi fell 0.3%, while in Japan the Topix rose 0.3% and the country’s benchmark index, the Nikkei, added 0.6%.
