Asian Markets Lower, Europe Gains Ground As Travel Stocks Rebound

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Asian Markets Lower, Europe Gains Ground As Travel Stocks Rebound

Trading in the Asian equities remained muted as bomb attacks in Brussels yesterday pulled down market sentiment. Major Asian indexes traded broadly lower today as investors embraced caution.

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Terror attacks weigh on sentiment

According to Singapore-based IG’s market strategist, Berard Aw, the intensity of market response to terror attacks has diminished substantially post 9/11. He believes that the subdued trading in the market is mainly due to the squaring of positions by investors ahead of the long weekend. He added that the Brussels attack might also have been factored in by the market.

Australia ASX All Ordinaries lost 0.51% to 5,204.30 during the day while Japan’s Nikkei 225 followed it by shedding 0.28% to 17,000.98. Taiwan’s TSEC 50 and Hong Kong’s Hang Seng dipped by 0.22% to 8,766.09 and 20,615.23 respectively. Only Shanghai SE Composite Index managed to get in the green, registering a gain of 0.35% to 3,009.96. Mumbai Sensex traded flat, up by 0.01% to 25,332.28.

Brexit concerns to be discussed

Meanwhile, European markets found respite today as major indexes opened higher following a recovery in travel stocks. The series of deadly blasts in Brussels had sparked heavy selling in travel-related stocks yesterday. Market momentum could be determined by multiple corporate earnings, which are due to release today. Meanwhile, the Bank of England’s Financial Policy Committee meeting is expected to be largely focused on Brexit concerns ahead of the June 23 referendum.

During the early hours, FTSE 100 surged 0.20% to 6,204.83 while Euronext 100 added up 5.04 points to 876.23. France’s CAC 40 gained 0.53% to 4,455.54 and Germany’s DAX registered an uptick of roughly 1% to 10,086.99. Swiss Market Index opened 0.80% higher at 7,915.83.

U.S. markets closed slightly lower yesterday as Belgium attacks dragged travel stocks down. The Dow Jones Industrial Average dropped 0.23% to 17,582.57 and S&P 500 Index finished the day 0.09% lower at 2,049.80. Futures in the premarket are slightly higher.