In Asia, both China and Japan closed over 1% lower. The Shanghai Composite suffered from souring sentiment after a resurgence of COVID cases in the city of Shanghai. The cautious trade stemmed from fears of another round of lockdowns. In Japan, the Nikkei fell 1.2%. Energy stocks dragged the Japanese benchmark lower with names such as Idemitsu Kosan, Japan Petroleum and Inpex sliding 6-10%.
In Europe, the major bourses are up in the neighborhood of 1% across the region. These markets followed the US’ bounce from yesterday as they closed just prior the upswing. Additionally, better than expected German Factory Orders helped support the rally. The May print rose 0.1% compared to the forecast of a decline of 0.6%. Financials are failing to follow the upward flow with lenders such as Deutsche Bank, Societe Generale, BNP Paribas and Credit Agricole falling 1-3%.