Trading in global stocks was mixed to higher Friday after the Bank of England’s aggressive lending rate cut. Investors also appeared to trade cautiously ahead of U.S. job data release later today.
What happened in the global markets?
In Japan, the Nikkei 225 (INDEXNIKKEI:NI225) shed 0.44 points to ease 0.00%. The index was led lower by stocks in the country’s Chemical, Steel and Insurance sectors.
A stronger yen also appeared to have made Tokyo stocks less attractive to foreign investors. The USDJPY slid 0.17% to 101.05. Yen also gained ground against the common currency Euro with the EURJPY pair pulling back 0.09% to 112.57.
In Taiwan, the Taiwan Weighted rose 0.75%, lifted by gains in the country’s Trading & Consumer Goods, Rubber and Other sectors.
But in South Korea, the KOSPI edged up 0.90%.
What about China?
The larger Shanghai Composite was down 0.19% at close, while the smaller HANG SENG INDEX (INDEXHANGSENG:HSI) in Hong Kong gained 1.44% at close.
In Australia, the S&P/ASX 200 rose 0.39%, supported by gains in the countries Resources, Gold and Metal & Mining sectors.
The Aussie also firmed against the greenback with AUDUSD rising 0.37%, while AUDJPY increased 0.19%.
How did Europe open?
European stocks largely opened higher Friday, with the EURO STOXX 50 seen going up 0.76%, Germany’s DAX rising 0.34% and France’s CAC gaining 0.83% in early morning trading.
Rate cut by BOE
The decision by BOE on Thursday to cut key benchmark rate to 0.25% from 0.50% seem to be lifting investor sentiment in Europe as the region struggles to avert a recession due to the stunning Brexit vote outcome. In addition to cutting rate to the lowest levels in its history, BOE also stepped up its purchase of bonds to increase the supply of money in the market.
“Surprising the market was always going to be a tall order […] but it looks like the Bank of England has done just that,” said Timothy Graf of State Street Global Markets EMEA.
Now investors have their eyes fixed on what the U.S. Labor Department says about employment in July.