The Dow Jones Industrial Average rose Monday as investors sought to increase the strong gains seen last week and to gauge recent price movements.
The industrial index rose 227 points, or 0.7%, while the Standard & Poor’s index rose 0.2%, while the Nasdaq fell 0.9%.
The 10-year Treasury yield rose Monday, recovering from a previous decline. It was trading in the last trade, up 4 basis points to 4.255%. The two-year yield was up two basis points to 4.59%.
At some point on Friday, the rate jumped above 4.33% before the Wall Street Journal reported that some Fed officials were worried about an excessive rate hike.
The moves come after another volatile week for equities as the third quarter earnings season has warmed up. Investors are watching earnings from tech giants like Apple, Amazon, Alphabet and Microsoft this week. Chinese tech stocks fell broadly, led by Wall Street-listed Chinese stocks, as “Neo” shares tumbled 24%, “Ali Baba” by 18.5% and “JD” by around 20%, to because of fears that the new Chinese leadership will sacrifice more economic growth on the market. Ideological Policy Report.
Europe
European equities rose on Monday, buoyed by hopes that the Federal Reserve (US central bank) will slow the pace of interest rate hikes as investors prepare for a busy week that includes a major rate decision. interest from the European Central Bank.
The pan-European Stoxx 600 index rose 1.6% while trading, with the travel, leisure, retail and banking sectors leading the gains.
Italian shares were up 1.4% after Georgia Meloni was sworn in, becoming Italy’s first female prime minister on Saturday. In Britain, London’s FTSE 100 Index rose 0.5% after the announcement of Rishi Sunak’s arrival in power in Downing Street.
Asian markets
In Asia, markets plummeted, sending the Hong Kong index sharply lower, after the leadership team unveiled by Chinese President Xi Jinping heightened fears of sacrificing economic growth for ideological policies in Beijing.
Shares in Hong Kong and mainland China markets fell sharply on Monday, while other major Asia Pacific markets rose.
Hong Kong’s Hang Seng fell 6.36% to its lowest level since April 2009, with the tech index down more than 9%.
Investors are also expected to announce policy measures at the 20th National Congress of the Communist Party of China, which concluded over the weekend with President Xi Jinping’s loyalists selected to form a central leadership group.
Mainland Chinese markets briefly entered positive territory on the back of better-than-expected economic data before declining again. Mainland China’s Shanghai Composite Index fell 2.02% to 2,977.56 points and the Shenzhen component lost 2% to 10,694.61 points.
Japan
Japan’s Nikkei index gave up most of its morning gains during the evening session, closing below the 27,000 point level on Monday as investors are concerned about the outlook for the Chinese economy.
The index closed trading on Monday, up just 0.31% to 26974.9 points. Of the 225 stocks in the index, 133 rose against 88 stocks down, while four remained unchanged. The broader Topix index rose 0.28% to 1887.19 points.
The real estate sector was the worst on the Nikkei index, down 2.12%. The chip companies finished trading without giving up most of their strong early gains. (agencies)
