Global stocks are mixed on Monday, as investors pause for breath following a record-setting performance on Wall Street last week and monitor Chinese economic data.
Asian stocks failed to find single direction, while European stocks are mostly into the red and the Wall Street futures are slightly on positive territory.
American big tech received a potential blow over the weekend after a Reuters report indicated that the Democratic-led House Financial Services Committee had circulated a proposal to bar tech giants from functioning as financial services institutions, or issuing digital currencies.
Asian markets recap
The main stock indexes in the Asia-Pacific region ended the first trading session of the week mixed amid weak economic data from China. Despite the slowdown of the GDP growth of the largest Asian economy, markets in the country managed to reverse the trend and ended the session with growth.
In China, the mainland index Shanghai Composite advanced by 0.36% to 2,941.14 points, while Shenzhen Component and Shenzhen Composite rose by more than 1%. Earlier today, it became clear that the economic growth of the Underwater Empire slowed down to 6.2% in the second quarter due to continued tensions created by the trade war with the United States. China recorded its slowest growth rate since 1992. In June, the growth in factory production and retail sales beat market expectations, while the foreign trade fell by 2% since the beginning of the year. Also, industrial production has developed poorly for two consecutive months. The stocks of Alibaba Group and Baidu rose by 1.51% and 0.13%, respectively, while China Petroleum Chemical Corporation declined by 0.21%.
Hong Kong’s index Hang Seng rose by 59.04 points, or 0.21%, to 28,530.66 points. The IPO of Budweiser, which was expected to become the largest listing for the year, was canceled by Anheuser-Busch InBev, the parent company.
In South Korea, the benchmark Kospi wiped out 0.20% to 2,082.48 points. The shares of LG Displays and SK Telecom rose by 0.70%, while Posco shares ended the session without any change in value.
Australian index S&P ASX 200 fell by 43.50 points, or 0.65%, to 6,653 points. Shares of the AMP Welfare Management Company fell by 15.81% after the company announced it was “unlikely to continue” with the sale of its insurance business and its state-of-the-art insurance.
The Tokyo Stock Exchange is closed for a national holiday.
European markets mid-session recap
European stocks erased early gains on Monday, amid worries that China’s economy is slowing due to a trade war with the US. The pan-European Stoxx 600 traded 0.26% lower to 385.83 points by mid-morning. Telecoms stocks led losses with a 0.9% decline while autos added 0.6% as one of only two sectors trading in positive territory.
German index DAX 30 is down by 16.55 points, or 0.13%, to 12,306.77 points at 09:40 GMT. The stocks of the chipmaker Infineon gained 0.4%, while carmakers are slightly higher with Daimler and Volkswagen adding 0.1% and 0.4%, respectively. Financial stocks are performing mixed after Deutsche Bank added 0.95%, while Commerzbank wiped out 0.8%.
French index CAC 40 declined by 0.29% to 5,556.43 points. Carmakers are among the best performers within the index with Renault gaining 1.15% and Peugeot rose by 0.9%. Meanwhile, the aircraft manufacturer Airbus edged higher by 0.9%.
British blue-chip index FTSE 100 is up by 0.09% to 7,498.88 points at mid-session trading. The stocks of Antofagasta jumped by 5.2%, which is its biggest one-day rise in five months, after a World Bank tribunal ordered Pakistan to pay damages of 5.8 billion USD to Tethyan Copper, a JV between the company and Barrick Gold, in a dispute over a copper mine. The retailer Sports Direct slumped 12% and was set for its worst day this year after it delayed its preliminary results, citing problems integrating House of Fraser and increased scrutiny of its accounts that could affect its guidance. Building materials distributor Travis Perkins was up 2.2% after a report here that it was accelerating plans to sell its unit and home improvement retailer Wickes in a 500 million GBP spin-off.
Wall Street pre-session recap
Wall Street stock index futures stalled on Monday, trading with minor changes.
At around 06:00 a.m. ET, Dow futures were up 31 points but indicated a positive open of around 17 points. The S&P 500 pointed to a slightly higher implied open while the Nasdaq was seen marginally lower.
Today, the markets will also be monitoring geopolitical developments after Iranian President Hassan Rouhani said Tehran is ready to hold talks with the US if Washington lifts sanctions and returns to the 2015 nuclear deal it exited last year. The Empire State manufacturing survey is due for publication at 8.30 a.m. ET, while Citigroup is set to report earnings before the bell.