The trading in Asian markets is positive this morning, led by financial stocks following US banks’ resilience tests.
Tokyo rose by 0.5%, Hong Kong added 1%, Shanghai rose by 0.3%, Sydney climbed by 1%.
Yesterday, the Federal Reserve announced that all major US financial institutions had passed the tests designed to test their ability to withstand extreme economic scenarios.
This is the first time all banks have passed the test since 2011, allowing them to increase dividends and buy back shares.
Wall Street closed yesterday with gains at the pound and the Euro strengthened against the US dollar by 1.4%.
The Dow Jones Industrial Average rose by 0.7%, the S&P 500 rose by 0.9%.
In the commodities market, the WTI crude oil rose by 1.1% to $ 44.7 per barrel.
The Brent oil was up by 1.4% to $ 47.3 a barrel.
The price of the Gold rose by 0.2% to $ 1,249 an ounce.
The US office of Statistics released data indicating a decline in the US trade deficit in May.
The trade deficit in goods excluding services declined by 1.8 percent in May to $ 65.9 billion.
The full data on the US trade balance will be published next week.
This morning there are declines on the Asian stock exchanges.
Tokyo loses 0.3%, Hong Kong is down by 0.4%, Shanghai maintains stability. Singapore retreated by 0.2%, Seoul is losing 0.2% and the Asia Dow index adds 0.1%.
The major electronics companies, including Samsung, are leading the declines on Asian stock exchanges.
However, the financial sector actually comes up following a speech by Federal Reserve Chairman Janet Yellen, which suggests that another rate rise may be on the agenda.
The Euro and the Japanese yen remain stable against the US dollar.
The WTI crude oil loses 0.25% and trades at $ 44.1 per barrel.
Yesterday the Wall Street markets closed down after the Health Law vote was postponed.
The Dow Jones (21,310.66 -0.46%) fell by 0.4%, the S&P 500 (2,419.38 -0.81%) lost 0.8% and the Nasdaq (6,146.62 -1.61%) retreated by 1.6%.
Google’s share (927.33 -2.62%) fell 2.4% after the European Union imposed a record fine of 2.4 billion Euros for violating its search engine competition rules.
The trading in the European stock exchanges this morning is conducted at price declines.
London is trading in a small decline, Frankfurt is down by 0.4%, Paris loses 0.4%.
Deutsche Telekom share is down by 3.3% after the news that the US media firm Sprint may merge with T-Mobile, controlled by Deutsche Telekom.
The US dollar is trading steadfastly against leading currencies.
The Japanese yen is up by 0.1% to 111.74 yen.
The Euro and pound sterling traded at $ 1.119 and $ 1.2722 respectively.
The oil continues to rise but remains below the price level of $ 50 a barrel.
The Brent oil is up by 0.8% to $ 46.2 a barrel, and the WTI is up by 0.7% to $ 43.7 a barrel.
China’s industrial sector rose by 16.7 percent in May from May 2016 as global demand increased.
The profit rose to 626 billion yuan (91.5 billion US dollars), according to China’s office of Statistics.
Economists’ forecasts are for a slowdown in China’s manufacturing growth in the second half of 2017, which will hurt industrial sector profits and the global economic downturn that began a year ago, however, Chinese exports remained strong, at the background of rising demand in the US and Europe.
Yesterday, the trading on the Wall Street stock exchanges closed in a mixed trend on the first trading day of the week.
The Dow Jones and the S & P closed almost unchanged, and the NASDAQ shed 0.3%.
The trading on Asian stock exchanges opened on Monday with price hikes as the oil prices rose and the futures contracts on Wall Street indexes rose.
Oil prices are up about 1% today, with Brent trading at $ 45.9 per barrel and WTI trading at $ 43.5 a barrel.
Despite the correction, many in the market estimate that oil prices will continue to be under pressure due to increased output in the US, Libya and other countries, and the question is whether Saudi Arabia, Russia and other oil exporters will soon take another aggressive step to reduce output.
The S&P 500 Index – Is the upward trend still underway?
The recent feeling in the markets is of discontent.
Stocks with sharp declines, negative headlines and in general a less positive atmosphere than we have been accustomed to.
The main question is whether this feeling is backed by market behaviour.
The year 2016 ended excellent for the S&P 500, not only with an increase of 9.56%.
but also how it ended and the strength of the long trend indicates that at this stage any decline will be for the purpose of a rise.
There are price rises this morning on the Asian stock exchanges, despite the declines in New York last night.
The reason for the increases is mainly the weakening of oil prices when the Chinese economy, which is a large oil consumer, will be the biggest beneficiary of the decline in prices.
Last night, prices fell in New York, led by the energy companies whose profits are eroding as oil prices fall, but while a figure that is poorly interpreted as one is positive for the other, so low oil prices are the ones that project positively on Asian trading.
The oil prices also dragged Europe to a negative close yesterday as well.
The British bank Barclays has been indicted on suspicion of fraud in connection with fund raising from investors in Qatar in 2008, which brought the bank $ 15 billion in capital that allowed it to survive the major financial crisis without government bailouts. The indictment was also filed against the CEO and four other senior officials.
The energy and financial stocks are leading the declines on European stock exchanges this morning.
The oil prices are falling today, with a WTI crude oil is down by 0.9% to $ 43.1.
A Brent crude oil trading down by 0.9% to $ 45.6,and it’s officially a bear market since yesterday
In Asia earlier, the indices were trading in declines at the background of the negative trend that closed trading on Wall Street yesterday.
Oil trading in the eastern part of the country also remained in focus after falling last night, and investors seem to continue to be wary of investing in black gold.
The protocol of the June interest rate meeting in Japan reveal that the bank’s leaders estimate that the rate of bond purchases on its behalf may decline, and that the bank remains cautious about an annual inflation target of 2 percent.
The Asian markets are trading this morning with a clear bias towards price hikes, following the positive closing on Wall Street last night and the rise in futures contracts this morning.
Europe is also expected to have a positive opening.
In Asia, the Japanese stock market is climbing, China is rising slightly, and Hong Kong is easing.
In Europe, the negotiations on Britain’s retirement terms from the European Union opened after the failure of Teresa Mae’s ruling party in the elections.
It is estimated that the EU will dictate the conditions for Britain’s exit, and without a majority in the parliament it will not be able to stand on its hind legs .
China and Hong Kong are waiting for the MSCI Index to update in the East, which will clarify whether some of the major stocks will enter the index of the developing countries of the organisation.
If so, analysts estimate a rise in shares there in the coming days.
The Australian market is slipping and tumbling today as Moody’s downgraded 12 Australian banks, weighing about a quarter of the stock market, because of concerns about credit to households and real estate.