World shares saw an overall upward trend on Monday, despite a decline in gold prices. Asian markets exhibited a mixed response, with Japan’s Nikkei 225 recording a slight dip, while several stock exchanges in the region either closed or operated on a half-day basis in anticipation of the Lunar New Year celebrations.
In early trading across Europe, key indices demonstrated modest gains. Germany’s DAX increased by 0.2%, reaching 24,958.01 points. The British FTSE noted a 0.3% uptick, settling at 10,479.47, and Paris’s CAC 40 also rose by 0.3% to 8,333.81.
In contrast, Japan’s Nikkei 225 declined by 0.2% to 56,806.41. This downturn followed the government’s report revealing slower-than-expected economic growth during the October-December quarter, which registered an annualized increase of only 0.2%. This lackluster performance raises the possibility of Japanese Prime Minister Sanae Takaichi advancing plans aimed at stimulating the economy through increased government spending and tax cuts, as noted by Marcel Thieliant from Capital Economics.
With several stock markets in China, South Korea, and Taiwan closed in observance of the upcoming Lunar New Year, trading activity remained limited. However, Hong Kong’s Hang Seng gained 0.5% during its half-day session, closing at 26,705.94 points. Australia’s S&P/ASX 200 also saw a slight gain of 0.2%, finishing at 8,937.10, while India’s Sensex edged up by 0.4%.
In the U.S., futures markets showed a positive trend, with the future for the S&P 500 increasing by 0.4%, similarly reflected by the Dow Jones Industrial Average. With U.S. markets set to close for Presidents Day, investor sentiments remained cautious but optimistic.
On the previous Friday, U.S. stock markets experienced a recovery following a significant drop triggered by fears surrounding artificial intelligence’s disruptive potential across various sectors, particularly impacting software firms. A report indicating a cooling in inflation contributed to the stabilization of the markets, hinting at a possibility for further interest rate cuts by the Federal Reserve. On that day, the S&P 500 incrementally rose by less than 0.1%, while the Dow Jones increased by 0.1%, though the Nasdaq composite edged down by 0.2%.
In individual stock performances, chipmaker Nvidia, a significant weights within the S&P 500, saw a decline of 2.2%. Conversely, technology firm AppLovin rebounded with a 6.4% rise after experiencing considerable losses earlier in the week due to concerns about AI disrupting the technology landscape.
Meanwhile, early trading saw declines in precious metals; gold prices dropped by 0.3% to $5,030.30 per ounce, while silver fell by 1.2% to $77.05 per ounce. Oil prices declined as well, with U.S. benchmark crude falling by 34 cents to $62.55 per barrel, and Brent crude price reflecting a similar decrease.
On the currency front, the U.S. dollar strengthened against the Japanese yen, trading at 153.33 yen compared to 152.64 yen previously. The euro also saw a slight dip, trading at $1.1867, down from $1.1872.
