Wall Street Leans Forward Pre-Bell; Futures Green, Europe Higher, Asia Closes Up

Wall Street pre-bell Monday is optimistic, with U.S. stock index futures pointing to an opening bell up 0.50% or more from Friday’s close, with the Nasdaq even higher. European bourses are trading markedly higher, while Asian exchanges closed broadly up, as the weekend passed without a missile launch from North Korea, reducing perceived tensions. Gold, yen and sovereign bonds weakened. Hurricane Irma has landed in Florida, but has been downgraded to a Category 1 storm. Oil is trading at $47.85 a barrel and 10-year U.S. Treasuries offer 2.06%.

The economic and the earnings calendars are vacant.

In Europe, the British FTSE 100 is up 0.51%, the Euronext 100 is up 1.03%, the French CAC 40 is up 1.16%, and the German DAX is up 1.11%.

In the futures, the S&P 500 is up 0.55%, the Nasdaq is up 0.77% and the Dow is up 0.55%.

Asian stock markets generally rallied Monday, on the no-show N. Korean missile. Also mainland China’s central bank, the People’s Bank of China said it would cut certain foreign-exchange rules, indicating the bank thought the yuan was strong enough, and possibly indicating monetary easing ahead. Hong Kong and Tokyo gained solidly, while Shanghai ended in the green. Other regional exchanges were higher, with the Kospi in Seoul up 0.66%.

The Nikkei 225 shook off a couple soft weeks on a strong rally, up 1.41% on the Korea outlook. A softer yen boosted exporters, while strong machinery orders undergirded sentiments, said analysts. Some short-traders were forced to cover positions.

The benchmark Nikkei 225 opened higher and gained modest ground in the morning session, before trading flat through the afternoon to finish up 270.95 to 19,545.77. Gaining shares outnumbered losers 201 to 17.

In other news, Japan’s core private-sector machinery orders rose 8.0% in July from June, to $7.91 billion.

Leading the upside were cyber-security house Trend Micro (TMICY, 4704:Tokyo), up 5.3%; followed by chemical concern Taiyo Yuden (TYOYY, 6976:Tokyo), up 5.3%; and then industrial robot-maker Yaskawa Electric (YASKY, 6506:Tokyo), up 5.0%.

On the downside were Sumitomo Metals (SMMYY, 5713:Tokyo), off 2.9%; and then non-ferrous metals maker Dowa Holdings (DWMNF, 5714:Tokyo), off 0.7%.

The Hong Kong Hang Seng Index stepped ahead 1.04%, as traders embraced the lack of a missile test by North Korea, and also mainland China’s central bank, the People’s Bank of China, tabling rules to support their currency, the yuan.

The broad gauge Hang Seng rose 286.66 to 27,955.13, as gaining shares outnumbered losers 43 to six.

Leading the upside were media-internet giant Tencent (700:HK), up 2.8%; followed by Apple supplier AAC Technologies (2018:HK), up 2.7%; and then Sino Land (83:HK), up 2.6%.

On the downside were Macau gaming house Sands China (1928:HK), off 0.7%; and then natural-gas distributor Kunlun Energy (135:HK), off 0.5%.

On the mainland, the Shanghai Composite rose 0.33% to 3,376.42.

On the other exchanges, the Taiwan TWSE lost 0.36%; the Australian ASX 200 inclined 0.71%; the Singapore Straits Times Index was flat; and the Thai Set gained 0.12%. In late trading in Mumbai, the Sensex was up 0.60%.

Leave a Comment