Global markets are on the rise with analysts referring to the situation in China, where Beijing promised new economic incentives, including greater tax cuts, against fears of slowing Asian economy’s growth.
The latest economic data showed shrinkage in trade and production in China, which raised the question of how Beijing will respond to alarming information.
A key topic in the focus of investors was the British parliamentary vote last night on the draft agreement that Prime Minister Theresa May managed to reach with Brussels and which was rejected by MPs.
Asian markets recap
Most Asian stock indexes ended the session with increases on the background of failed Brexit vote deal.
The Japanese blue-chip index Nikkei 225 fell by 112.54 points, or 0.55%, ending the day at 20,442.75 points. Shares of Toyota and Honda grew by 0.71% and 0.02% respectively, while Sony Corporation and Internet Initiative Japan Inc rose by 2.93% and 3.08% respectively.
In South Korea, the local benchmark Kospi rose by 0.43% to 2,106.10 points.
On the Chinese markets, the continental index Shanghai Composite rose by a minimum of 0.08 points, while the Hang Seng Hong Kong benchmark added 71.81 points, or 0.27%, to its value and ended the session at 26,902.10 points.
The shares of the technology company Alibaba Group Holding rose by 1.08%, while those of PetroChina and China Petroleum & Chemical Corp added 1.6% and 0.91%, respectively.
In Australia, the local index S&P ASX 200 reported an increase of 0.35% to 5,835.20 points and the financial sector companies recorded a share capital increase of 0.61%.
European markets recap
European markets closed Wednesday trading session awaiting the vote of no confidence today with the government of Britain led by Theresa May.
The pan-European Stoxx 600 index ended almost half a percentage point higher, and most indexes and stock exchanges ended in green.
The French index CAC 40 recorded the highest growth of 0.51% and the German DAX rose by 0.36%. Only the English FTSE 100 failed to follow the trend and fell by 0.47%.
The European banking index led the sector with a growth of 2.4% after some of Italy’s fragile lenders managed to partially recover from their losses. The move was due to the statement by a prominent Italian MP, according to which mergers of some of the troubled banks in the country could help the Italian banking system to stabilize. Shares of Italian Unicredit and FinecoBank rose by almost 6% after the news.
At the same time, the Deutsche Bank shares rose by 8.4% after Bloomberg reported that the supervisory authorities preferred the bank to merge with a European competitor instead of its German Commerzbank.
On the corporate front, Norsk Hydro shares jumped more than 5% after Brazil’s state authorities lifted a production embargo imposed on one of its aluminum refineries.
Contrary to positive trends, the British publisher of educational books Pearson announced on Wednesday that revenues from its core business in the United States are slowing. The company collapsed to the bottom of the index after the news with a fall in the stock price of 6%.
The British Cineworld cinema chain was worst performing in the session as its stock declined by nearly 7%, declaring a revenue growth slowdown in 2018.
Wall Street markets early-session recap
The main indexes of the New York Stock Exchange started the Wednesday’s session with increases against a quarterly Goldman Sachs report that surpassed analysts’ forecasts.
The blue-chip index Dow Jones Industrial Average reported growth of 0.54% to 24,196.69 points. The broader S&P 500 rose by 0.40% to 2,620.67 points, while the technology index Nasdaq Composite added 43.71 points, or 0.66%, to its value, reaching 6,713.35 points.
Earlier this day, the US bank Goldman Sachs managed to overcome earnings expectations in the last quarter of 2018. The lender’s profit amounted to 2.54 billion USD (6.04 USD per share).