Chinese stock gains belie mixed risk sentiment in markets so far today
Chinese stocks push higher to session highs ahead of the close
- Shanghai Composite +1.2%
- CSI 300 +1.7%
- Hang Seng +0.5%
The gains here come as Chinese investors returned from their week-long break in observance of the Lunar New Year celebration last week; playing catch up to equity markets during that period. Elsewhere, risk tones are more subdued with losses seen in major bourses across Australia, Singapore, Indonesia, and Malaysia.
That said, USD/JPY is taking the positives from sentiment here as the pair trades close to the 110.00 handle ahead of European trading. Meanwhile, there isn't much to cheer about for oil as the commodity stays pressured to start the new week down by 0.9% currently after touching the $52 handle earlier.
US equity futures remain muted and that's how I would expect European equities to begin trading later as well. With trade talks between US and China set to cast a shadow over markets this week, expect choppy trading once again until we have more clarity on the way negotiations are playing out between the two parties.