US and UK closed as Europe advances
US Markets were closed for Memorial Day.
European Markets
European stocks finished mainly higher Monday, however it wasn’t enough to stop the largest monthly fall in 15 months. German exporters were among the biggest gainers, while banks weighed following Spain’s credit downgrade.
In the US, the Federal Reserve indicated the central bank was unlikely to raise interest rates due to the European sovereign debt crisis.
According to data released yesterday, European confidence in the economic outlook unexpectedly declined in May, while inflation increased less than anticipated.
The UK benchmark FTSE 100 was closed. The French CAC40 retreated 7.50, or 0.21% to 3,507.56, while the DAX added 18.15, or 0.31% to 5,964.33.
French banks BNP Paribas and Societe Generale shed 1.4% and 0.7%, while Germany’s Deutsche Bank added 0.6%.
German companies Infineon and Siemens rose 2.8% and 1.6%.
BP shares slumped 6.8% in Frankfurt after the company’s latest attempt to plug the leak in the Gulf of Mexico failed. There was also a warning the leak may not be stopped until August.
Daimler put on 1.7%% after Deutsche Bank lifted its rating on the luxury carmaker.
Volkswagen advanced 1.6%.
Japanese Markets
Japan’s Nikkei finished the worst month since October 2008 by edging higher on Monday. Stocks were mixed as several broker upgrades pushed the market above the gain line.
In economic news, Japan’s factory production increased a lower than expected 1.3% in April.
The Nikkei 225 added 5.72, or 0.06% to 9,768.70.
The major exporters moved higher, albeit only slightly, after the yen depreciated against major currencies. Automaker Toyota added 0.8%.
Astellas Pharma Inc. rose 1.7% after Mizuho Securities lifted its rating on the drugmaker to ‘neutral’.
Kao Corp. climbed 3.8% on a broker upgrade.
Toray Industries gained 2.8% on reports it was part of a consortium that developed carbon fiber that can be used to make automobile bodies and engine parts.
Heavyweight financials Mizuho, Sumitomo Mitsui and Mitsubishi UFJ dipped 1.2%, 0.9% and 0.7% respectively.
Hong Kong Markets
The Hang Seng was virtually unchanged Monday. The euro debt crisis weighed on sentiment, while the prospect of US interest rates being kept on hold buoyed investors.
The Hang Seng dipped 1.52, or 0.01% to 19,765.19.
Bank of China was 0.3% below the line, while Bank of Communications edged 0.2% higher.
Heavyweight banks HSBC was 0.6% weaker.
Yue Yuen Industrial, the world’s largest contract shoemaker, put on 0.8%.
Cathay Pacific, Hong Kong’s official airline, was 2.7% above the line.
Property developers retreated after the government reportedly was taking steps to reign in prices after house prices rose nearly 13% over the last year.
Guangzhou R&F Properties was 2.1% weaker, while Sun Hung Kai Properties lost 1%.
Interestingly, house prices in Sydney are reported to have risen by around the same amount.
Carmakers were stronger after saying output would be 15% higher than last year.
BYD, the automaker backed by Warren Buffett, added 2% and Geely Automobiles surged 4.2%.
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