European shares experienced a downward trend following a mixed session in Asia today, with Chinese markets reopening after the Lunar New Year holiday. While U.S. futures showed a slight increase, oil prices faced a decline. Notably, the U.S. will observe President's Day today, leading to market closures.
In European trading, Germany's DAX dropped by 0.4%, Paris' CAC 40 lost 0.5%, and London's FTSE 100 declined by 0.1%. Meanwhile, in Asia, Hong Kong's Hang Seng saw a 1.1% decrease, with notable drops in technology and property sectors. Major developer Country Garden, Sino-Ocean Group Holding, and China Vanke experienced significant losses, although the Shanghai Composite index managed to gain 1.6%.
Market analyst Stephen Innes highlighted the reopening of China's markets post-holiday and its global influence, as U.S. markets remained fairly quiet due to their holiday. Tokyo's Nikkei 225 experienced a slight drop, influenced by reports about Nintendo's upcoming console release.
Elsewhere in Asia, Australia's S&P/ASX 200 and South Korea's Kospi showed modest gains, while Bangkok's SET and India's Sensex also saw increases. On Wall Street last Friday, all major indices fell, with inflation figures indicating higher-than-expected price rises, affecting market sentiment.
The prospect of rising interest rates remains a concern, potentially impacting borrowing costs and investment prices. The hope is that the economy will remain resilient despite these challenges, supported by consumer spending. A preliminary report indicated improving consumer sentiment but slightly below economist expectations.
In commodities trading today, U.S. benchmark crude oil declined to $77.64 per barrel, while Brent crude also dropped to $82.58 per barrel. Currency markets saw the U.S. dollar weakening against the Japanese yen and the euro, reflecting ongoing market dynamics and global economic uncertainties.
