European Stock Markets
Stocks in Europe slipped lower in the first trading session of the
new year, but U.S. futures and markets in the Asia-Pacific region mostly
pushed higher following steep price rises across global indexes last
year.
The Stoxx Europe declined 0.1% in early trade, dragged down by a 0.5% fall in Germany’s Dax index. Futures markets pointed to a 0.2% opening gain for the Dow Jones Industrial. Stocks in the Asia-Pacific region mostly rose.
Many investors head into 2018 confident that the yearlong market rally can continue amid a strengthening global recovery and corporate earnings growth. Hefty share price gains across the globe added more than $9 trillion in market value to equity markets in 2017. The Dow Jones
Industrial Average surged 25% last year, while the S&P 500 rose over 19%.
Those steep gains have made some investors cautious. But many are penciling in further stock price rises in 2018 thanks to firming global growth, while the Republican tax overhaul is expected to boost earnings at many companies.
In Europe, France’s CAC 40, the U.K.’s FTSE 100 and Germany’s DAX all started the year lower amid declines in autos and mining shares.
Equities in Hong Kong and mainland China led gains in the Asia-Pacific region Tuesday. The Hang Seng was up 1.9%, thanks in part to gains by Chinese messaging-and-gaming heavyweight Tencent’s. But financials were the most-important segment for the benchmark, making up more than half of the advance.
There were also gains for tech stocks, which suffered steep
declines last year following a global pullback from the sector. Shares
in smartphone components suppliers
Sunny Optical
and AAC Technologies jumped 10% and 7% respectively, while Taiwan’s
Largan Precision
,
3008 5.85%
which makes lenses for smartphone cameras, closed up 5.9% in
Taiwan after skidding 22% in December. It helped the Taiex rise 0.6% and
finish at a five-week high.
China’s Shanghai Composite Index rose 1.2%.
One laggard Tuesday was Australia, where the stock benchmark fell 0.1% despite gains in commodity stocks. Banks, a big portion of the equities market there, started 2018 lower. Analysts have previously expressed concerns that higher global interest rates could add to the economic pressure from high household debt in Australia. The S&P/ASX 200 overall ended 2017 with its best three months since the first quarter of 2015.
Markets in Japan were closed Tuesday.
In currencies, the U.S. dollar started 2018 as it ended last year—lower. The WSJ Dollar Index was recently off 0.2% after falling to its lowest level since late September on Friday. Last year, the index slid 7.5%, its worst year since 2003.
In bond markets, the yield on the 10-year Treasury note was at 2.428% Tuesday from 2.409% on Friday.
In commodity markets, Brent crude oil was up 0.2% at $67.00 a barrel
The Stoxx Europe declined 0.1% in early trade, dragged down by a 0.5% fall in Germany’s Dax index. Futures markets pointed to a 0.2% opening gain for the Dow Jones Industrial. Stocks in the Asia-Pacific region mostly rose.
Many investors head into 2018 confident that the yearlong market rally can continue amid a strengthening global recovery and corporate earnings growth. Hefty share price gains across the globe added more than $9 trillion in market value to equity markets in 2017. The Dow Jones
Industrial Average surged 25% last year, while the S&P 500 rose over 19%.
Those steep gains have made some investors cautious. But many are penciling in further stock price rises in 2018 thanks to firming global growth, while the Republican tax overhaul is expected to boost earnings at many companies.
In Europe, France’s CAC 40, the U.K.’s FTSE 100 and Germany’s DAX all started the year lower amid declines in autos and mining shares.
Equities in Hong Kong and mainland China led gains in the Asia-Pacific region Tuesday. The Hang Seng was up 1.9%, thanks in part to gains by Chinese messaging-and-gaming heavyweight Tencent’s. But financials were the most-important segment for the benchmark, making up more than half of the advance.
China’s Shanghai Composite Index rose 1.2%.
One laggard Tuesday was Australia, where the stock benchmark fell 0.1% despite gains in commodity stocks. Banks, a big portion of the equities market there, started 2018 lower. Analysts have previously expressed concerns that higher global interest rates could add to the economic pressure from high household debt in Australia. The S&P/ASX 200 overall ended 2017 with its best three months since the first quarter of 2015.
Markets in Japan were closed Tuesday.
In currencies, the U.S. dollar started 2018 as it ended last year—lower. The WSJ Dollar Index was recently off 0.2% after falling to its lowest level since late September on Friday. Last year, the index slid 7.5%, its worst year since 2003.
In bond markets, the yield on the 10-year Treasury note was at 2.428% Tuesday from 2.409% on Friday.
In commodity markets, Brent crude oil was up 0.2% at $67.00 a barrel
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