Overnight Summary — World markets take flight
The global equity markets are mostly higher. S&P Futures are trading about 20 points better to around the 4588 area. The market was stagnant in a narrow range through most of the Asian session, but began breaking out to the upside toward the end. The European open enabled follow through, taking the spoos to the high of 4592.75. The low was established early at 4565.25.
In Asia, China slipped 0.3% while Japan rose over 1%. The Shanghai was among the few markets trading lower. The negative sentiment over recent coronavirus lockdowns overshadowed speculation that the PBOC may lower the reserve requirement ratio. In Japan, the Nikkei took back the prior day’s loss and then some. Export stocks were met with enthusiasm after the recent weakness in the yen. Toyota and Subaru were the leading automotive names with gains of around 2.5%.
In Europe, the major bourses are following the rising tide. Peace talks between Russia and Ukraine resume in Turkey today and may be lifting spirits. Financials are outperforming the benchmarks with lenders such as BNP Paribas, Societe Generale and Credit Agricole up 2-3%. Auto OEMs are leading as well with Renault, Volkswagen and BMW up about 2-3%.