London (AFP) – Major stock markets diverged Monday as traders awaited more earnings this week from heavyweight companies, including HSBC bank, chip giant Nvidia and retail giant Walmart.
US markets were closed Monday for Presidents’ Day, depriving other markets of direction.
Focus this week will also be on what clues markets can glean from minutes of recent policy meetings of the US Federal Reserve and European Central Bank about the pair might start cutting interest rates as inflation cools.
On Monday, mainland Chinese stocks were buoyant after Lunar New Year, leading gains in most other Asian markets, as figures showed holiday spending surged past pre-pandemic levels.
Hong Kong closed down 1.1 percent, breaking a three-day rally, with analysts saying investors felt uneasy after a decision by China’s central bank to leave a key policy rate unchanged, seen as an attempt to bolster the yuan.
Tokyo’s key Nikkei index ended flat.
In Europe, Frankfurt dipped and Paris ended flat.
London edged higher, managing to avoid an overall loss as shares in AstraZeneca rallied after the drugs giant had a lung cancer treatment approved in the United States.
“The US markets will be closed on Monday…but China is back after a week-long holiday, and we will have earnings from Nvidia in mid-week,” noted Fawad Razaqzada, market analyst at City Index trading group.
“Investors have continually ignored the Fed’s consistent pushback against expectations of an early rate cut. Instead, they have chosen to concentrate on mostly stronger earnings and the AI optimism, taking advantage of the bullish momentum to drive stocks higher.”
Razaqzada cautioned that “a correction of some sort, should not come as major surprise in the tech sector”.
A larger-than-expected rise in US wholesale prices, according to data on Friday, dealt a blow to hopes of an early interest-rate cut by the Fed.
Elsewhere Monday, oil prices rose as tensions in the crude-rich Middle East ratcheted higher with a US-owned cargo ship coming under attack twice off southern Yemen.
– Key figures around 1630 GMT –
London – FTSE 100: UP 0.2 percent at 7,728.50 points (close)
Paris – CAC 40: FLAT at 7,768.55 (close)
Frankfurt – DAX: DOWN 0.2 percent at 17,092.26 (close)
EURO STOXX 50: DOWN less than 0.1 percent at 4,763.07 (close)
Tokyo – Nikkei 225: FLAT at 38,470.38 (close)
Hong Kong – Hang Seng Index: DOWN 1.1 percent at 16,155.61 (close)
Shanghai – Composite: UP 1.6 percent at 2,910.54 (close)
New York – Dow: DOWN 0.4 percent at 38,627.99 points (close)
Euro/dollar: DOWN at $1.0769 from $1.0781 on Friday
Dollar/yen: UP at 150.17 yen from 150.16 yen
Pound/dollar: DOWN at $1.2584 from $1.2603
Euro/pound: UP at 85.56 pence from 85.51 pence
West Texas Intermediate: UP 0.6 percent at $79.66 per barrel
Brent North Sea Crude: UP less than 0.1 percent at $83.54 per barrel
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