· Dow futures up 200 points following a 4-week losing streak
Stock futures climbed in early morning trading on Monday following a four-week losing streak on Wall Street.
Futures on the Dow Jones Industrial Average rose 213 points. S&P 500 futures and the Nasdaq 100 futures also traded in positive territory as well.
· Chinese stocks underpin Asia; markets wary of virus spike, U.S. presidential debate
Chinese stocks drove Asian markets higher on Monday, though sentiment was still cautious ahead of a U.S. Presidential debate and as a spike in new coronavirus cases undermined global economic recovery hopes.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS advanced 0.5% to 550.47, but still within striking distance of a two-month low of 543.66 hit last week.
The index is set to end the month deep in the red after three straight monthly gains as the pandemic continues to wreak economic havoc around the world and raises investor anxiety about sky-high valuations.
Chinese shares opened higher and helped to underpin Asian markets after a tentative start, with the blue-chip CSI 300 index .CSI300 up 0.85%. Shanghai's SSE .SSEC climbed 0.5%.
Encouragingly, data over the weekend showed profits at China’s industrial firms grew for the fourth straight month in August buoyed in part by a rebound in commodities prices and equipment manufacturing.
Market focus will also be on progress on a new fiscal support package in the United States while investors will be closely watching UK-Europe post-Brexit trade talks as they continue this week.
· Nikkei ends higher on boost from ex-dividend stocks
Japanese shares closed higher on Monday following bigger appetite for stocks that were set to go ex-dividend this week, although gains were capped due to U.S.-Sino tensions.
The benchmark Nikkei share average rose 1.32% to 23,511.62 and the broader Topix gained 1.69% to 1,661.93. All but two of the 33 sector sub-indexes on the Tokyo exchange traded higher.
Investors took cues from Wall Street’s positive finish on Friday when main indexes gained more than 1%, while in Japan, analysts cited demand for index futures by index and mutual funds lifting sentiment a day before the ex-dividend date.
But U.S.-China tensions capped gains after reports the U.S. had sent letters informing companies that suppliers of certain equipment to China’s Semiconductor Manufacturing International Corporation must apply for individual export licenses.
· European markets rally as banks bounce; HSBC up 10%
European stocks bounced Monday morning, looking to recover from their worst week since mid-June, with a global rise in coronavirus cases and political developments stateside on investors’ radar.
The pan-European Stoxx 600 jumped 1.7% in early trade, with banks surging 4.1% to lead gains as all sectors and major bourses entered positive territory.
The European blue-chip index had closed 3.7% lower for the week on Friday after a choppy session, with global markets roiled by a resurgence in coronavirus cases on the continent and further afield.
HSBC shares surged 10% in early trade, on track for their largest daily percentage gain in over a decade after China’s Ping An Insurance announced that it would increase its stake in Europe’s largest lender.
Reference: Reuters, CNBC
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