The Nikkei, CSI 300, Shanghai Composite, and Hang Seng are all rising, and US market futures, led by NASDAQ, are also pointing higher, according to Deutsche Bank strategists. They point out that whereas the S&P 500, Stoxx 600, and Nikkei have had significant gains this year, China's primary indices have been flat due to weak domestic growth.
Divergent tendencies are seen in regional stock indices.
"European stocks were more muted, with the DAX (+0.46%, +0.53% Friday) setting a new high while the STOXX 600 (-0.36%, -0.21% Friday), the CAC (-0.90%, -0.16% Friday), and the FTSE 100 (-1.38%, -0.21% Friday) declining. Additionally, the KOSPI (+11.49%) and Nikkei (+4.74%), which had their best weeks since May and June, respectively, experienced significant increases in Asia.
Bonds performed poorly, but US stocks performed better. Despite a -0.17% decline from Thursday's record high on Friday, the S&P 500 increased +0.36%, and the small cap Russell 2000 also reached a record high on Friday (+1.12%, +0.51%).
"The underperformance in China's equities market has also been attributed to underwhelming domestic growth, with the main indices practically flat YTD, in contrast to a +13.7% rise for the S&P 500, +11.1% for the Stoxx 600, and +36.5% for the Nikkei."
"The Nikkei (+0.30%) is little higher but behind advances in China's markets, including the CSI 300 (+0.76%) and Shanghai Composite (+0.84%), as well as the Hang Seng (+1.61%) in Hong Kong, following Japan's GDP news."
"Equity futures are also rising, with NASDAQ futures (+0.35%) outperforming those on the S&P 500 (+0.10%) and Europe's Stoxx 50 (+0.30%) this morning."
The US retailers Home Depot (Tuesday), Target, TJX (Wednesday), and Walmart (Thursday) will be the focus of attention as the earnings season draws to a close in order to assess the state of US consumers. Other names to keep an eye on are Alibaba and Baidu in China, and Analog Devices and Deere in the United States.
Divergent tendencies are seen in regional stock indices.
"European stocks were more muted, with the DAX (+0.46%, +0.53% Friday) setting a new high while the STOXX 600 (-0.36%, -0.21% Friday), the CAC (-0.90%, -0.16% Friday), and the FTSE 100 (-1.38%, -0.21% Friday) declining. Additionally, the KOSPI (+11.49%) and Nikkei (+4.74%), which had their best weeks since May and June, respectively, experienced significant increases in Asia.
Bonds performed poorly, but US stocks performed better. Despite a -0.17% decline from Thursday's record high on Friday, the S&P 500 increased +0.36%, and the small cap Russell 2000 also reached a record high on Friday (+1.12%, +0.51%).
"The underperformance in China's equities market has also been attributed to underwhelming domestic growth, with the main indices practically flat YTD, in contrast to a +13.7% rise for the S&P 500, +11.1% for the Stoxx 600, and +36.5% for the Nikkei."
"The Nikkei (+0.30%) is little higher but behind advances in China's markets, including the CSI 300 (+0.76%) and Shanghai Composite (+0.84%), as well as the Hang Seng (+1.61%) in Hong Kong, following Japan's GDP news."
"Equity futures are also rising, with NASDAQ futures (+0.35%) outperforming those on the S&P 500 (+0.10%) and Europe's Stoxx 50 (+0.30%) this morning."
The US retailers Home Depot (Tuesday), Target, TJX (Wednesday), and Walmart (Thursday) will be the focus of attention as the earnings season draws to a close in order to assess the state of US consumers. Other names to keep an eye on are Alibaba and Baidu in China, and Analog Devices and Deere in the United States.
