World stocks rally starts slowing

Mon, 08-Jan-2018, 22:11

London - A global 2018 stock market rally showed signs of losing momentum Monday as New York and London stocks stalled, but Asia and eurozone markets powered on.

Asian equities mostly advanced following yet more records on Wall Street, with Hong Kong chalking up a blistering tenth day of gains.

The positivity spilled over into Europe with London scaling another record pinnacle at 7 733.39 points, before turning lower ahead of a UK government reshuffle.

"US stocks are seeing some pressure in early action, on the heels of last week's rally to ring in the New Year, with a heavy dose of economic data and the unofficial start of earnings season expected later this week," said analysts at the Charles Schwab brokerage.

Frankfurt and Paris maintained momentum to gain up to 0.4% each as the weaker euro against the dollar boosted exporters.

"The FTSE 100 is little-changed... but having touched a new record at the beginning of the session, the broadly bullish trend remains intact," said IG analyst Chris Beauchamp.

Wall Street opened a touch lower, after the Dow Jones clocked up its third straight record Friday, and the second close above the 25,000 landmark.

With the corporate earnings season about to begin, global equities continue to see in the new year on a positive note, with optimism boosted by a strong US economy -- and solid prospects elsewhere.

There is "nothing to rattle investors at the moment", ETX Capital analyst Neil Wilson told AFP.

Hong Kong extends run 

In Asia, Hong Kong rose 0.3% to continue an impressive run of gains that have seen the Hang Seng Index rise more than 5% to its highest level since late 2007.

Shanghai jumped 0.5% while Tokyo was closed for a public holiday. Seoul put on 0.6% as officials from North and South Korea prepare to hold talks for the first time since 2015.

comments powered by Disqus