Europe’s main stock markets mostly climbed Monday after strong gains for Chinese indices, as trading entered a traditionally weak month for Wall Street.
Hong Kong’s Hang Seng Index closed with a gain of 2.2 per cent, fuelled by the share price of Chinese e-commerce giant Alibaba soaring almost 20 per cent on bumper results, which included a surge in AI revenue.
Chinese equities also won support from official data showing that China’s factory output ticked up in August, analysts said.
The Purchasing Managers’ Index — a key measure of industrial output — was 49.4, up slightly from 49.3 in July.
However, it was also a fifth straight month of contraction, as only a figure above 50 indicates growth.
In Europe, the London and Frankfurt stock markets gained, approaching the halfway stage. Paris was flattened amid political turmoil in France over contested budget proposals.
Wall Street is closed Monday for Labor Day, while the dollar traded mixed against its main rivals.
“Stocks tend to underperform this month on both sides of the Atlantic,” noted Kathleen Brooks, research director at XTB trading group.
The tide already began to turn at the end of last week, with “an underwhelming set of results for (AI chip giant) Nvidia, along with a sharp selloff in stock markets in Europe and the US”, Brooks added.
READ ALSO: Alibaba Soars But Asia Markets Dip
Wall Street retreated from record highs Friday as a key US inflation reading accelerated, lowering the odds of sustained cuts to interest rates by the Federal Reserve in the coming months.
Also Friday, a US appeals court ruled that many of President Donald Trump’s tariffs, which have upended global trade, were illegal — but allowed them to remain in place for now, giving him time to take the fight to the Supreme Court.
– Key figures at around 1045 GMT –
London – FTSE 100: UP 0.1 per cent at 9,198.91 points
Paris – CAC 40: FLAT at 7,705.31
Frankfurt – DAX: UP 0.3 per cent at 23,975.42
Tokyo – Nikkei 225: DOWN 1.2 per cent at 42,188.79 (close)
Hong Kong – Hang Seng Index: UP 2.2 per cent at 25,671.78 (close)
Shanghai – Composite: UP 0.5 per cent at 3,875.53 (close)
New York – Dow: DOWN 0.2 per cent at 45,544.88 (close)
Euro/dollar: UP at $1.1722 from $1.1693 on Friday
Pound/dollar: UP at $1.3525 from $1.3507
Dollar/yen: UP at 147.11 from 147.01 yen
Euro/pound: UP at 86.68 pence from 86.56 pence
Brent North Sea Crude: UP 0.8 per cent at $68.04 per barrel
West Texas Intermediate: UP 0.9 per cent at $64.60 per barrel
AFP
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