Global stock markets showed mixed results on Monday, with China leading gains as recent surveys pointed to a boost in manufacturing activity. This growth was partially driven by a surge in orders ahead of U.S. President-elect Donald Trump’s inauguration next month. Oil prices rose slightly, while U.S. stock futures edged lower.
Both official and private surveys of factory managers revealed strong new and export orders, potentially reflecting efforts by U.S. importers to preemptively stock up before any potential tariff hikes from Trump. On Saturday, Trump threatened to impose 100% tariffs on the BRIC nations, including Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the UAE, if they act to undermine the U.S. dollar. He further demanded assurances that the BRICs would not create a new currency or undermine the dollar’s strength.
“Asia’s markets are riding a wave of optimism, buoyed by Wall Street’s record-setting performance on Friday and emerging signs of recovery in China’s economy,” said Stephen Innes of SPI Asset Management.
In early European trading, major indices showed declines: Germany’s DAX dropped 0.2% to 19,585.83, while France’s CAC 40 fell 0.9% to 7,168.39. The UK’s FTSE 100 edged 0.1% lower to 8,277.14. U.S. futures for the S&P 500 and Dow Jones Industrial Average were also down 0.2%.
Investors are closely monitoring China’s upcoming economic planning meeting, as authorities are expected to announce new measures to support the economy in the lead-up to Trump’s inauguration.
In Asia, Hong Kong’s Hang Seng rose 0.6% to 19,532.19, and Shanghai’s Composite index gained 1.1% to 3,363.98. Taiwan’s Taiex surged 2.1%, while Japan’s Nikkei 225 advanced 0.8% to 38,513.02, buoyed by a stronger U.S. dollar against the Japanese yen, benefiting exporters like Toyota, which rose 2.3%. Nissan, despite initial losses, recovered to close 0.4% higher after refuting reports about the resignation of its CFO.
In South Korea, the Kospi slipped slightly, while Australia’s S&P/ASX 200 edged up 0.1%. In Bangkok, the SET index rose by 0.6%.
On Friday, U.S. stocks finished the post-Thanksgiving session with moderate gains. The S&P 500 rose 0.6%, the Dow gained 0.4%, and the Nasdaq added 0.8%.
Retailers, including Macy’s and Best Buy, saw gains as Black Friday unofficially marked the start of the holiday shopping season, though early deals had already been available for weeks. Tesla’s stock climbed 3.7%, marking a monthly increase of more than 38%, driven by CEO Elon Musk’s support of Trump. Musk also spurred speculation about a potential Hasbro takeover, helping the toy company’s shares rise by 2%.
Apple rose 1.1%, with the tech giant hoping that its new artificial intelligence features would drive holiday sales.
Bitcoin, edging closer to $100,000, traded at $96,016.15.
In commodity markets, U.S. benchmark crude oil gained 37 cents to $68.37 per barrel, while Brent crude rose 40 cents to $72.24. The U.S. dollar strengthened to 150.20 yen, and the euro slipped to $1.0510.
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