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Global Markets: European Exchanges Decline, Asian Markets Rise

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On European exchanges, stock prices fell on Monday morning, particularly in Paris, due to a political crisis stemming from disagreements over the national budget. The STOXX 600 index of leading European stocks was down nearly 0.15 percent at 9:30 AM. The London FTSE index weakened by 0.10 percent to 8,279 points, while the Frankfurt DAX slid 0.19 percent to 19,588 points, and the Paris CAC fell 0.99 percent to 7,165 points. The Paris stock exchange is under pressure from the political crisis in France due to disagreements over the national budget, which could lead to a vote of confidence in the French government.

On Asian exchanges, stock prices rose on Monday as solid economic indicators from the region encouraged investors, while the value of the dollar against a basket of currencies increased following last week’s decline. The MSCI Asia-Pacific index was up 0.5 percent at 7:00 AM, recovering last week’s losses. The Nikkei index on the Tokyo Stock Exchange strengthened by 0.8 percent, while stock prices in Australia, South Korea, Hong Kong, and Shanghai rose between 0.1 and 1.3 percent. After last week’s decline, stock prices rebounded at the start of this week, thanks to solid economic indicators.

According to the latest report, the PMI index of industrial activity in China rose to 50.3 points in November, the highest level in six months. However, in the services sector, the PMI slipped from 50.2 to 50 points, but the composite PMI remained unchanged at 50.8 points. The markets were positively influenced by the data that retail sales in Australia increased by 3.4 percent year-on-year in November, the highest since mid-2023. However, South Korean investors were concerned by the data showing that exports in November grew by only 1.4 percent year-on-year, less than expected and significantly slower than a month earlier when growth was 4.6 percent.

Dollar Strengthens, Oil Prices Rise

On the currency markets, the value of the dollar against a basket of currencies increased after last week’s decline. The dollar index, which shows the value of the US dollar against the other six major world currencies, was around 106.17 points this morning, compared to 105.80 points on Friday evening. The exchange rate of the dollar against the Japanese currency rose from 149.75 to 150.70 yen.

The US currency also strengthened against the euro, with the price of the euro slipping to 1.0530 dollars, down from 1.0575 dollars on Friday evening. The euro is under pressure from the political crisis in France due to disagreements over the budget, which could lead to a vote of confidence in the French government. Meanwhile, oil prices have risen. The price of a barrel on the London market strengthened by 0.60 percent to 72.25 dollars, while on the US market, a barrel increased by 0.58 percent to 68.40 dollars.