8:00 AM EST – Bank of England MPC member Cunliffe speaks
10.30 AM EST – US crude oil inventories
10.30 AM EST – US Cushing crude oil inventories
7:01 PM EST – United Kingdom RICS House Price Balance
After a brief pullback on Tuesday, China’s Shanghai Composite Index regained strength and rose to the highest levels in one month. Despite the decline in foreign exchange levels, the Shanghai Composite Index rose. It was supported by a rally in the financial sector. In January, China’s foreign exchange reserves fell unexpectedly below $3 trillion for the first time in six years.
As a result, the market opened lower in the early hours. The market regained strength as the day progressed. The monthly drop in reserves is the smallest decline in seven months. On February 8, the Shanghai Composite Index rose 0.46% and ended the day at 3,167.45. The SPDR S&P China (GXC) closed at 77.71—a gain of 0.19% on February 7.
After posting moderate losses on Tuesday, Hong Kong’s Hang Seng Index regained strength and rose to more than three-month high price levels. The rally in the market on February 8 was supported by the rise in stocks related to Chinese property developers and brokerage firms. The market sentiment is supported by the inflow of capital from China to Hong Kong through Shanghai-Hong Kong Stock Connect. On February 8, the Hang Seng Index rose 0.66% and closed the day at 23,485.13. The iShares MSCI Hong Kong (EWH) fell 0.05% to $20.98 on February 7.
After falling to two-week low price levels on Tuesday, Japan’s Nikkei index regained strength and rose on February 8. The market sentiment improved due to the stall in the yen’s rise on Wednesday. Also, the rise in stocks related to the shipbuilding, transport, and precision instruments sectors supported the rally. On February 8, Nikkei rose 0.51% and closed the day at 19,007.6. The iShares MSCI Japan (EWJ) closed at 50.94—a fall of 0.06% on February 7.
Next, we’ll see how European markets performed in the early hours on February 8.