European stocks fluctuated on Monday. What about Asian ones?

European stocks fluctuated on Monday. What about Asian ones?

Stock markets are rebounding from a few consecutive weeks of declines since March. However, investors are still cautious after the recent volatility and reassessment of valuations in options markets. According to reports, the Federal Reserve will likely maintain its dovish stance on policy this week. However, analysts at Goldman Sachs Group Inc. and Deutsche Bank AG think that the recent downfall in the U.S. is nearing an end.

 

In Europe, the Stoxx 600 Index climbed up by 0.1% on Monday. Meanwhile, the MSCI Asia Pacific Index surged forward by 0.9%, and the MSCI Emerging Market Index jumped by 0.7%.

 

The Stoxx Europe 600 Index was under pressure by Oil producers. According to Commodity trader Trafigura Group, the market will return to surplus. On the other hand, BP Plc noted that the growth of oil demand is over, and consumption may never return to the levels seen before the Covid-19 pandemic took hold.

 

How did the U.S. share fare?

 

U.S. equity-index futures rallied due to signs of progress toward a coronavirus vaccine. Futures on the S&P 500 Index gained 1%, along with Nasdaq 100 Index. Airline and retail shares also rose in European trading. Pfizer’s Chief Executive Officer Albert Bourla stated that the U.S. might deploy a vaccine to the public before the year-end. That statement boosted the positive sentiment on the markets.

 

Furthermore, Immunomedics Inc. doubled after Gilead Sciences Inc. consented to buy the cancer drugmaker for $21 billion. Oracle Corp. also jumped by 9% in pre-market trading. The company beat Microsoft Corp. in negotiations for the U.S. operations of TikTok, bolstered the stock.

 

Thanks to such a powerful monetary impulse coursing through the U.S. and European economy, the odds are that the stock market will be surprised again positively in the fourth quarter – noted Sebastien Galy, the senior strategist at Nordea Investment Funds. He thinks that traders should remain in a buy on dip market.

 

Comments Rating 0 (0 reviews)