Global stocks close mixed on growing geopolitical concerns
- 29th August 2020
- Posted by: Hakeem
- Category: Stock
Global stocks ended the week mixed, on the present prevailing macros. The MSCI’s benchmark for global equity markets rose by 0.43% to 585.73 after earlier setting a new intraday high, while stocks on Wall Street also rallied, with technology leading the way and the Dow closed to an all-time high.
At the world’s largest equity market, the Dow Jones Industrial Average rose 0.54%, the S&P 500 gained 0.45% and the tech-laden Nasdaq Composite added 0.49%.
In Europe’s trading session, stocks drifted lower as investors dumped this year’s outperformers, including healthcare stocks and technology, and increased buying pressures on banking stocks after the Fed unveiled its new policy framework.
The broad pan-regional FTSEurofirst 300 index dropped by 0.50% to close at 1,429.82.
Milan Cutkovic, Market Analyst at AxiCorp in a note to Nairametrics, gave valuable insights on the prevailing macros affecting the European financial markets. He said:
“European equities are under pressure with the German index down almost 1 percent on the day.
“Few market participants believe that we will see another full lockdown in Europe.
“Nevertheless, the rising number of coronavirus cases are a reason for concern, and investors on this side of the Atlantic do not seem to share the optimism felt on Wall Street.
“The rising Euro could prove to be another headache in the near-term. The outlook for the currency has turned positive, and a breakout above $1.20 appears to be imminent.”
In Japan, the benchmark Nikkei 225 share index closed down by 1.4% while the yen, seen as a safe-haven currency to buy in times of uncertainty, strengthened 1.03% versus the greenback at 105.46 per dollar.
There have been speculations on Japanese prime minister’s health this week, but the resignation of Japan’s longest-serving premier shocked global investors, given that he has spearheaded efforts to revive economic growth by clamping down on deflation.