Home News Markets risk appetite modestly rebounded on Thursday

Markets risk appetite modestly rebounded on Thursday

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Markets risk appetite modestly rebounded on Thursday, as traders took a break from selling beaten-down stocks and pumping money into safe-haven bonds and the dollar. Most of the European markets colored in green and the optimism spread across the ocean, giving positive momentum to the Wall Street index futures.

However, the investors continue to monitor the trade tensions between the US and China. Both countries exchanged threats to each other and things are getting quite serious, which is the reason why the markets respond so negatively.

Against this background, Beijing authorities have threatened to restrict US access to rare earth minerals and metal, which are key to the US industry, whose main supplier is China.

The upcoming G20 summit could provide the markets with relief, as the United States and China could use the event to begin negotiating again over trade.

Asian markets recap

Asian markets ended the stock trading session on Thursday, mostly into the red territory, as growing tensions between the US and China had a negative impact on investors’ sentiments.

Japan’s blue-chip index Nikkei 225 dropped by 0.29% to 20,942.53 points after the stock of Fast Retailing and Softbank Group declined by more than 1%. Paper manufacturers headed noticeably lower, with Daio Paper Corp ending down 2.61%, Nippon Paper Industries down 2.45% and Oji Holdings down 1.89%. The best performers were JGC Corp (+3.53%), Fuji Electric (+3.33%) and Tokyo Electron (+3.3%), while on the flip side were Takara Holdings (-4.26%), Astellas Pharma (-4.23%) and Kikkoman (-4.16%). Topix also ended into the red, wiping out 0.29% to 1,531.98 points.

Nikkei 225

In Australia, the benchmark S&P ASX 200 fell by 0.74% to 6,392.10 points, with almost all sectors colored in red.

Meanwhile, the mood of the Chinese markets was also dazzled, with the mainland benchmark Shanghai Composite shrinking by 0.31% to 2,905.81 points, while the Shenzhen Component wiped out 0.74% to 8,943.35 points. Shenzhen Composite also fell by 0.6% to 1,532.03 points.

In Hong Kong, the benchmark Hang Seng fell by 0.44% to 27,114.88 points.

South Korean index Kospi was among the best performers today adding 0.77% to 2,038.80 points, with Samsung Electronics’s stock up by 1.8%.

The investors continue to monitor the trade tensions between the US and China. Both countries exchanged threats to each other and things are getting quite serious, which is the reason why the markets respond so negatively.

Against this background, Beijing authorities have threatened to restrict US access to rare earth minerals and metal, which are key to the US industry, whose main supplier is China.

European stocks mid-session recap

European stocks rose Thursday and bond yields bounced higher, providing a sense of relief after several jittery days in markets over fears of a slowing global economy.

In Europe, the Stoxx Europe 600 was up 0.42% to 372.08 points, trimming some of the losses it suffered Wednesday.

German index DAX 30 edged higher by 53.11 points, or 0.45%, to 11,890.92 points at 11:00 GMT. The stocks of carmakers started the session with a sharp rise, but later the trade worrier prevailed and changed the trend into the red. The shares of Volkswagen and Daimler are trading down by 0.5% each. The shares of BASF are up by 0.22%.

DAX 30

French index CAC 40 is trading with an increase of 0.33% to 5,239.43 points. Renault and Fiat Chrysler want to join forces and create one of the largest car companies in the world, but the French Government wants a guarantee that no jobs will be cut in any merger. The shares of Peugeot and Renault are the biggest losers today, edging lower by 1.3% each, while Airbus added 0.3%.

British blue-chip index FTSE 100 added 0.45% to 7,217.83 points at mid-session trading. Tesco PLC was failing to participate in the advance, sliding 0.5% after Deutsche Bank slightly lowered its earnings per share estimates for the heavyweight of the supermarket sector. Among the mid-caps, bus and trains outfit FirstGroup got the thumbs-up for its results statement and strategic reboot.

Wall Street pre-session recap

The US stock index futures were slightly higher Thursday morning as the rapid decline in bond yields stabilized, easing concerns about a recession.

The protracted trade dispute between China and the US still weighed on markets. A senior Chinese diplomat ramped up the rhetoric overnight. Also, China has halted soy purchases from the US.

At around 7:03 a.m. ET, Dow futures indicated a positive open of more than 20 points. Futures of S&P and Nasdaq were both seen slightly higher.

Investors are likely to closely monitor a flurry of economic data on Thursday. The latest weekly jobless claims and the second reading of gross domestic product data are both due at around 8:30 a.m. ET. Advance economic indicators and pending home sales for April are set for release slightly later in the session.