Sun, 27 Sep 2020

NEW YORK, New York - Stock markets in Europe and Asia made gains on Monday, while investors and traders in the U.S. and the UK took the day off for national holidays.

U.S. markets were closed on Monday as the country marked Memorial Day.

Tensions between the U.S. and China are once more becoming the central focus of global markets, and will be a major factor for Wall Street in the week ahead.

The countries have ratcheted up their rhetoric over differences related to the origination of Covid-19, and China's proposed new security laws for Hong Kong which the U.S. oppose. U.S. President Donald Trump is proposing new sanctions on China and has begun threatening to derail the Phase-One partial trade deal agreed earlier this year.

On the positive side all 50 U.S. states and many countries around the world have begun to loosen lockouts.

European markets were bolstered by a $9 billion government bailout agreed between the airline and Germany, as a result of which the government will take a 20% equity interest.

The German Dax rose 2.87% Monday.

In Paris, the CAC 40 climbed 2.15%.

The big mover in South America however was Brazil, where the IBovespa soared 4.25%.

On Asian markets, the Shanghgai Composite edged up 4.20 points or 0.15% on Monday to close at 2,817.97.

Hong Kong's Hang Seng gained 22.10 points or 0.10% to 22,952.24.

The big gainer was the Australian All Ordinaries, surprisingly because China is Australia's No. 1 export market and it too is taking on China over the origination of the coronavirus. The All Ords added 121.10 points or 2.16% to 5,729.90.

The Nikkei 225 in Japan rose sharply, gaining 353.49 points or 1.73% to 20,741.15.

The U.S. dollar was in demand throughout the Asian session Monday, but softened a little during the European time zone.

By early morning trading in Auckland and Sydney on Tuesday, the euro had steadied around 1.0894. The British pound remained weak at 1.2188.

The Japanese yen was unchanged at 107.73. The Swiss franc rose to 0.9717.

The Canadian dollar was a tad weaker at 1.3982. The Australian dollar was little changed at 0.6543, while the New Zealand dollar firmed a fraction to 0.6100.

More Asia Pacific News

Access More

Sign up for Asia Pacific News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!