European stocks opened strong, while Asian markets took a downturn following Wall Street’s best week in a year. China’s latest economic stimulus package fell short of investor expectations, creating mixed reactions worldwide.
European Markets Open Higher
European stocks rose in early trading:
- Germany’s DAX: Up 1.2% to 19,440.95
- France’s CAC 40: Increased by 1.1% to 7,418.83
- UK’s FTSE 100: Gained 0.7% to 8,129.57
Meanwhile, U.S. futures showed promising signs of growth, with S&P 500 futures up 0.3% and Dow futures up 0.2%.
Asian Markets Decline as China’s Stimulus Disappoints
In Asia, markets reacted to China’s 6 trillion yuan ($839 billion) stimulus package, which many hoped would spark significant economic growth. Instead, it appears the package aims to stabilize local government debt:
- Hong Kong’s Hang Seng Index: Fell 1.5% to 20,426.93
- South Korea’s Kospi: Dropped 1.2% to 2,531.66
- Japan’s Nikkei 225: Closed with minor gains, up just 0.1% at 39,533.32
- Australia’s S&P/ASX 200: Declined by 0.4% to 8,266.20
SPI Asset Management’s Stephen Innes noted that while the stimulus is substantial, it focuses more on debt relief than economic expansion.
Slowing Inflation in China Adds to Concerns
China’s inflation rate also slowed to 0.3% in October, marking the lowest level in four months. This data, released by the National Bureau of Statistics, highlights the challenges facing the Chinese economy as it grapples with slow growth.
U.S. Stock Market Performance
Wall Street ended last week with record gains:
- S&P 500: Increased 0.4% to 5,995.54, the best weekly gain since November 2023
- Dow Jones Industrial Average: Up 0.6% to 43,988.99
- Nasdaq Composite: Added 0.1% to 19,286.78
Bond Market Updates
In the bond market, the yield on the 10-year U.S. Treasury eased slightly to 4.30% from 4.33%. The Federal Reserve’s rate cuts have helped stabilize inflation near the 2% target, though resilient U.S. economic growth has kept yields relatively high.
Oil and Currency Markets
Oil Prices:
- U.S. Benchmark Crude: Down 8 cents to $70.30 per barrel
- Brent Crude: Fell by 20 cents to $74.07 per barrel
Currency Markets:
- Dollar: Rose to 153.79 yen
- Euro: Declined to $1.0684
