Global stocks initiated carefully as US lawmakers battled to accept a new stimulus plan following a global rush of coronavirus cases, though the squeeze on loaded short positions left the dollar hanging to an unsettled bounce.
On Monday, European stocks slowly opened higher following mixed moves in Asia. The pan-European STOXX 600 index increased by 0.6%, assisted by an increase in stocks of technology, but returns were capped by poor profit updates from large banks.
Index heavyweight HSBC informed its poor debt charges could go over the previous estimate of $13 billion, and France’s Societe Generale (OTCBB: SOGN) reported a Q2 loss of 1.26 billion euro ($1.48 billion).
E-mini futures for the S&P 500 had a few changes, making investors cautious about the absence of a new stimulus package in the US and Chief of Staff of the White House Mark Meadows is not confident over the deal.
Last week Apple (NASDAQ: AAPL) became the world’s most valuable company, as the US technology sector had scaled new record highs.
On Monday, China’s factory data indicated the fastest rate of expansion in almost a decade. That assisted with China’s blue chips rally 1.6% <.CSI300>, offsetting concerns over US-China relations. Japan’s Nikkei <.N225> added 2.2%, courtesy of drawback in the yen. However, South Korea shares <.KS11> were down.