Global stocks are inching higher on Monday, but global growth worries persisted and investors awaited more news from US-China trade talks. However, media reports suggested that Deutsche Bank has begun tentative merger talks with rival Commerzbank improved the markets’ sentiment.
Meanwhile, Germany’s industrial production unexpectedly decreased in January while exports were unchanged, underpinned mainly by demand from outside the European Union. Industrial production decreased by 0.8% month-on-month in January, while economists had predicted a 0.5% gain.
Earlier, a Tokyo court rejected the request of the former Nissan Motor boss Carlos Ghosn to attend the automaker’s board meeting this week, days after he was released from detention on a 9 million USD bail. The news gave impetus to the European stocks indexes and Wall Street futures.
Asian markets recap
The markets in the Asia-Pacific ended the trading session on Monday despite the continuing investor concerns over a possible slowdown in the global economy after key US and Chinese data failed to meet expectations last week.
China’s index Shanghai Composite added 1.92% to its value and reached a level of 3,026.99 points. Shenzhen Composite also moved upward with a growth of 3.89% to 1,667.81 points. The People’s Bank of China is expected to further mitigate its monetary policy to boost lending and thus support the slowing economy of the country. Governor Yi Gang said on Sunday that the central bank would not use the exchange rate to boost exports or as a tool in trade disputes.
The Japanese blue-chip index Nikkei 225 also finished the session with a slight increase of 0.47% to a level of 21,125.09 points, while the smaller Topix added 0.57% to its value to 1,581.44 points. The stocks of Nissan rose by 1.11% after Reuters announced, citing a source familiar, that former company chief Carlos Ghosn wants permission from the Tokyo District Court to attend the board of directors of the car company on Tuesday.
In South Korea, the Kospi index rose by 0.03% to 2,138.10 points and the main indexes in Singapore and Malaysia failed to grow in afternoon trading. Hong Kong’s index Hang Seng rose by 0.97% to a level of 28,503.30 points.
The Indian indexes rose on Sunday after the country announced it would hold seven-stage parliamentary elections starting on April 11th.
The Australian index S&P ASX 200 dropped by 0.38% to 6,180.20 points with most sectors ending on the red territory.
European markets mid-session recap
German index DAX 30 is trading with an increase of 28 points, or 0.25%, to 11,485.94 points at 10:45 GMT. Deutsche Bank jumped 3% amid reports that its top executives have agreed to hold discussions with rival Commerzbank AG about a potential merger. Commerzbank shares rallied 4.2%.
French index CAC 40 rose slightly by 12 points, or 0.23%, to 5,243.18 points at 11:45 GMT. The stocks of the aerospace group Safran fell by 1.3% after a Boeing 737 MAX plane operated by Ethiopian Airlines crashed. Boeing rival Airbus rose by 0.3%. Tire maker Michelin Cie Des Estb slid half a percent after acquiring 88% of PT Multistrada Arah Sarana TBK, a tire manufacturer based in Indonesia, for 480 million USD. Automaker Renault advanced 1.8% and Peugeot gained 0.4%.
British benchmark FTSE 100 is trading up by 51 points, or 0.72%, to 7,155.18 points at mid-session. Miners Anglo American, Antofagasta and Glencore were up 1-2% while energy giant BP Plc advanced 0.8%. Polymetal International rallied 2% after the precious metals mining firm reported a 5% increase in adjusted EBITDA in fiscal 2018, driven by higher production volumes and stable cost performance. Soft drinks maker Britvic gained 0.9% after appointing Joanne Wilson to the Board.
Wall Street markets recap
Wall Street stock index futures are moving with single direction on Monday, with Dow Jones Industrial Average falling due to expected collapse in Boeing shares, following the weekend crash of an Ethiopian Airlines 737 Max 8 jet (flight ET302).
Around 07:10 a.m. ET, Dow futures indicated a lower open of more than 112 points. Futures for S&P 500 and Nasdaq were slightly up by 6.13 points and 21.53 points, respectively.
Dow component Boeing was solely responsible for the drop in the Dow futures in the premarket, with shares of the aerospace giant down nearly 10 percent in premarket trading as some airlines grounded the planemaker’s best-selling 737 MAX 8 passenger jet following the second deadly crash involving the plane. Developments around the accident will affect Dow Jones during the session.
Meanwhile, investors will keep an eye on more data out Monday, with retail sales out at 8:30 a.m. ET and business inventories at 10 a.m. ET.