The risk of US government shutdown has been avoided this Monday, sending US stocks bolstering giving them a slight edge this week. Investors are looking to focus on several economic reports this week, while Japanese stocks surge due to positive earnings reports from a basket of major companies. The French election this Sunday can stir a lot of effects as investors wait eagerly for the results.
The risk of government shutdown threatened the US economy and stocks over the weekend, but fortunately, an agreement was made to reverse the current. The deal puts a spotlight on an increase in defense spending and $1.5 billion for the border security. According to Jasper Lawler of London Capital Group, “The avoidance of a U.S. government shutdown helped markets shift from a neutral to more positive tone overnight in Asia,” and “The Japanese yen extended last week’s losses on Monday as geopolitical risk retreated, helping Japanese stocks gain.”
S&P 500 futures saw an increase of 0.22% by 4.25 points to 2,384.75, Down Industrial Average futures, were also up by 0.15% by 29 points to 20,903, and Nasdaq 100 futures inched higher by 0.2% on 13.50 points to 5,594. On contrary to the stocks’ performance, last Friday was they closed a little bit lower but saw a positive week ending April.
The upbeat results from the earnings season brought a bolstering wave for Japanese stocks, even with the market being closed for the holiday. The Nikkie Stock Average was up by as much as 0.6% to 19,310.52 to cap off this day before heading to an array of holidays. Other Asian markets and European markets have ceased their services today in honor of Labor Day.
Tokyo Electron, a chip production company, was up by as much as 13% after a tremendous quarter. The chip company reported a net profit increase of 48% for their fiscal year that ended last March. NTT Data also surged by as much as 5.8% after better revenue and profits for their fiscal year; popular electronics company Fujitsu also saw an increase of 8.4% after a reported 64% increase in net profit for its current fiscal year.
Australia’s ASX200 was also up by 0.6% to 5,956.50, boosted by big banks that are trampling earnings forecasts. According to CMC Market’s chief market analysts, Ric Spooner, “Investors are anticipating solid results supported by low bad debt provisions and cost control. Yield investors continue to see banks as a relatively stable income proposition.”
for your round-the-clock market update! We provide you with the latest news surrounding Forex, commodities, automobile, consumer, financial, economy, and technology. Never miss any news beat! Subscribe now!