Stock markets traded in narrow ranges as investors awaited central bank decisions and earnings reports due out in coming weeks, reports LA Times.
Markets were closed
U.S. stock markets were closed in observance of the Martin Luther King Jr. holiday.
- In Europe, France’s CAC 40 declined 0.2% to 6,089, while Germany’s DAX edged up 0.1% to 13,541. Britain’s FTSE 100 dropped 0.3% to 7,654.
- Japan’s benchmark Nikkei 225 edged 0.2% higher to close at 24,083.51, while Australia’s S&P/ASX 200 added 0.2% to 7,079.50.
- South Korea’s Kospi rose 0.5% to 2,262.64, while Hong Kong’s Hang Seng lost 0.9% to 28,800.63.
- The Shanghai Composite index gained 0.7% to 3,095.79.
One-year loan prime rate unchanged
China’s central bank left its one-year loan prime rate unchanged at 4.15%, holding off on easing credit further as it uses other methods to pump up liquidity in the markets ahead of the Lunar New Year.
Interest rate decisions
The rate, based on quotes from major banks, was made China’s benchmark in August. Julian Evans-Pritchard of Capital Economics said that the People’s Bank of China can indirectly influence it through it’s own interest rate decisions and “appears to have adopted a wait-and-see approach in response to the recent improvement in the economic data.”
However, “with growth likely to come under renewed pressure, we think the PBOC will resume its rate cuts before long,” he said.
Stand of Bank of Japan
Elsewhere, investors are looking to a statement from the Bank of Japan when its two-day policy meeting ends on Tuesday.
- The European central bank will make an interest rate decision later in the week.
- Markets are also watching for earnings reports expected in coming weeks by companies around the world.
Wall Street’s milestone-setting week
On Friday, Wall Street capped a milestone-setting week with more modest gains that nudged the major stock indexes to all-time highs.
The benchmark S&P 500 index also notched its second consecutive weekly gain.
Technology stocks
Technology stocks powered much of the market’s broad gains, along with communication services companies and banks.
Energy sector stocks
Energy sector stocks were the only decliners. Bond prices fell, sending yields higher.
Investors in buying mood
Positive corporate earnings reports
The latest batch of positive corporate earnings reports and economic data has helped keep investors in a buying mood after the midweek signing of an initial trade deal by the U.S. and China.
Progress on trade has eased fears on Wall Street about the potential for the dispute to escalate further.
Benchmark crude oil
Benchmark crude oil rose 32 cents to $58.86 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude oil, the international standard, gained 45 cents to $65.30 a barrel.
The dollar rise
The dollar rose to 110.18 Japanese yen from 110.13 yen on Friday. The euro slipped to $1.1084 from $1.1191.
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Source: LA Times
