LONDON (AP) — European stock markets held up Monday despite another big fall in China’s benchmark amid ongoing worries over the outlook for the world’s second-largest economy.
KEEPING SCORE: In Europe, Germany’s DAX was up 0.6 percent at 9,908 while the CAC-40 in France rose 0.4 percent 4,352. The FTSE 100 index of leading British shares was flat at 5,913. Wall Street was poised for a solid open with both Dow futures and the broader S&P 500 futures up 0.5 percent.
UNCERTAINTY REIGNS: After a dreadful first week of the new year, traders are unsure whether the resilience shown Monday in the face of another 5 percent decline in China means the jitters are over for now. Last week, U.S. stocks, for example, had their worst week in four years
ANALYST TAKE: “With very little data due out today I would worry that there is very little meat on the bones of this morning’s rally, other than bulls coming in at low prices after last week’s falls,” said James Hughes, chief market analyst at GKFX.
CHINA FOCUS: China remains very much the focus in financial markets following a torrid time last week. On Monday, Chinese stocks sank again after a rebound Friday that analysts suggested was due to buying from a group of state entities dubbed the “National Team.” Trading was suspended twice last week after a key index plunged 7 percent. That sent out global shockwaves and pushed down oil prices. China’s stock market has little connection to the rest of its economy, but its decline focused foreign attention on the slowdown in Chinese growth.
ASIA’S DAY: The Shanghai Composite Index fell 5.3 percent to 3,016.70 and Hong Kong’s Hang Seng sank 2.8 percent to 19,888.50. Sydney’s S&P/ASX 200 lost 1.2 percent to 4,932.20 and Seoul’s Kospi fell 1.2 percent to 1,894.84. Tokyo was closed for a holiday.
ENERGY: Benchmark U.S. crude shed 54 cents to $32.63 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, a benchmark for international oils, fell 69 cents to $32.86 per barrel in London.
CURRENCIES: The euro was down 0.1 percent at $1.0910 while the dollar rose 0.4 percent to 117.60 yen.
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