As the week commenced, European markets initiated with a lower opening, whereas most Asian markets exhibited higher trends, resulting in a mixed start to the week.
European markets experienced a lower opening on Monday, contrasting with mostly higher trends in Asian markets, setting the stage for a mixed start to the week. Meanwhile, U.S. markets remained closed for Martin Luther King Day.
In specific market movements, France’s CAC 40 lost 0.1%, settling at 7,454.74, Germany’s DAX slipped 0.1% to 16,688.90, and Britain’s FTSE 100 shed 0.2% to 7,619.80. Futures for the S&P 500 gained 0.1%, while those for the Dow Jones Industrial Average remained virtually unchanged.
China’s central bank surprised observers by maintaining its one-year policy loan interest rate at 2.5% on Monday and injecting funds into the financial system. Market analysts suggested that the focus on monetary policy effectiveness had shifted, with expectations rising for a reserve ratio requirement cut in February.
In the Asian markets, the Hang Seng in Hong Kong lost 0.2% to 16,216.33, while the Shanghai Composite index was up 0.2% at 2,886.29. Baidu, the search engine provider, experienced a significant decline of 11.5% following allegations that its Ernie AI platform was linked to Chinese military research into artificial intelligence, which the company vehemently denied.
In Japan, Tokyo’s Nikkei 225 briefly surpassed the 36,000 mark for the first time in 34 years but ended slightly lower, gaining 0.9% to close at 35,901.79. The Kospi in South Korea remained nearly flat at 2,525.99.
The recent Taiwan presidential election resulted in the victory of ruling-party candidate Lai Ching-te, shaping the future trajectory of the self-ruled democracy’s relations with China over the next four years. Taiwan’s Taiex gained 0.2% to 17,546.82.
Australia’s S&P/ASX 200 remained virtually unchanged at 7,496.30.
On Friday, the S&P 500 edged up by 0.1%, the Dow Jones Industrial Average fell 0.3%, and the Nasdaq was basically flat. Expectations of multiple interest rate cuts by the Federal Reserve drove stocks toward record levels, with Treasury yields falling. The yield on the 10-year Treasury eased to 3.94%, contributing to a relaxed economic and financial system.
In commodities, a barrel of benchmark U.S. crude oil lost 33 cents to $72.35, and Brent crude, the international standard, gave up 30 cents to $77.99 per barrel. The U.S. dollar strengthened against the Japanese yen, reaching 145.50, and the euro rose to $1.0955 from $1.0950.