Asian And European Markets Mixed Over Currency And Oil Concerns

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Asian markets witnessed a choppy session today as most of region’s indices slipped into red before adding some gains. Of all the major Asian indices, China’s SE Composite Index closed the day with the highest gains, hitting two months highs as Chinese regulators loosened up regulations pertaining to lending to stock market investors. Other Asian markets were unchanged.

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Chinese equities jump

Shanghai added up 2.15% to 3,018.80 while Hong Kong’s Hang Seng inched up 0.06% to 20,684.15. Taiwan TSEC 50 index finished slightly higher by 0.02% to 8,812.70 while Mumbai Sensex managed to add 259.40 points to 25,212.14. In contrast, Japan’s Nikkei 225 fell 1.25% to 16,724.81 in the wake of stronger yen while Australia’s ASX dropped 0.27% to 5,224.90.

In European markets, some opened on a mixed note, driven by oil volatility and Brexit fears. The FTSE 100 surged 0.21% to 6,202.41 while Euronext 100 dipped 0.07% to 874.33. France’s CAC 40 opened 0.11% weaker at 4,457.56, but Germany’s DAX managed to add 92.59 points to 10,043.39. Swiss Market Index registered a gain of 0.74% to 7,871.64 during the late Asian trade.

Currency market pivotal

The pressure on the pound could keep European equities on alert throughout the day, according to experts. It is to be noted that the pound has been hit by fresh political turmoil that pushed Brexit supporter, lain Duncan, to quit last week.

In the United States, market are trading mostly unchanged from last week. The Dow Jones Industrial Average is down 0.12% while S&P 500 is similarly down 0.17%. Many market analysts hold the view that the U.S. market will closely track the currency markets this week as any further fall in the dollar could boost stock prices. Moreover, any fall in the greenback will also help oil to rebound, which could drive the markets up as well.

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